Norway will spend more oil money

Finance Minister Kristin Halvorsen. Photo: Regjeringen.

The Norwegian economy has been affected by the global recession, but the downturn seems to be less severe than in most other countries, writes Norway’s Ministry of Finance on its website.

The implementation of extensive liquidity and credit policy actions, as well as expansionary fiscal and monetary policy measures, has stabilised the economy and provided stimulus to domestic demand. The economy has performed better than expected only a few months ago, and the outlook has improved. However, growth in Mainland GDP will be below trend, and unemployment is forecast to increase further in 2010, states the Ministry.

Against this background, Finance Minister Kristin Halvorsen says, the proposed 2010 Fiscal budget is designed to provide a basis for sustained recovery of the Norwegian economy. The structural, non-oil deficit is estimated at NOK 148.5 billion in 2010, or NOK 44.6 billion more than the estimated real return on the Government Pension Fund – Global. The excess spending is in accordance with the fiscal policy guideline.

Read more on Government.no

More information: The National Budget – A summary