OECD SAYS HIGH WAGE DEALS HARMING NORDIC STATES
  High wage settlements in Nordic countries
  threaten to cut exports and reduce the international
  competitiveness of their industries, the Organisation for
  Economic Cooperation and Development (OECD) said.
      In Denmark, the OECD said wage settlements concluded in
  early 1987 were likely to contribute to a marked deterioration
  in competitiveness. Sweden's competitive position was also seen
  at risk from accelerating wages.
      The OECD predicted that domestic demand would come under
  pressure from tight fiscal policy in Denmark, as well as
  Norway, Sweden and Finland.
      Overall economic growth will vary in the different
  countries between 1986 and 1988, the OECD semi-annual report
  said.
      After a strong rise of 7.8 pct in 1986, total domestic
  demand in Norway was seen falling by 1.5 pct in 1987 and one
  pct the following year. Denmark was also expected to see a
  slump in domestic demand. The report said growth in Gross
  Domestic Product (GDP) was likely to speed up slightly in
  Sweden and Finland in 1987 and 1988, while declining in Denmark
  and Norway.
      Iceland needs to try harder to implement its new economic
  strategy if any more progress is to be made towards sustained
  and balanced non-inflationary growth, the OECD said.
  

