Norway's economy recovering: IMF

May 24, Oslo: Norway’s economy is beginning to recover, says The International Monetary Fund (IMF). The recovery is supported by strong domestic demand and accommodative macroeconomic policies.

Today a mission from the International Monetary Fund (IMF) presented its annual assessment of the Norwegian economy and Norwegian economic policy.

IMF predicts a GDP growth for mainland Norway of 1¾ per cent this year and 2¼ per cent in 2018. Unemployment is expected to gradually decline to just below 4 per cent by 2018.The IMF-delegation’s projections and assessments are in line with the newly released Revised National Budget for 2017.

– I am pleased to hear that the IMF-mission in general shares my own assessment of the Norwegian economy and the challenges we are facing. The economic downturn has been managed well through supportive fiscal and monetary policies. I agree that fiscal policy should remain supportive until the recovery is on a more solid footing, says Finance Minister Siv Jensen.

The delegation welcomes the recent revision of the estimated expected real return of the Pension Fund from 4 to 3 percent. This revision reflects the lower expected returns in light of the new norm of “low for long” global interest rates.

The IMF also draws attention to circumstances that could threaten the budding recovery. Weaker than projected global growth or re-emergence of European bank stress could weaken Norwegian economic growth. Domestically, a sharp and widespread correction of house prices could lower consumption and residential investment with ripple effects on corporate earnings and banks.The delegation finds that the overall banking system remains resilient. However, high and increasing household debt and house prices constitutes a vulnerability for the financial system.The IMF staff will complete a more extensive report on the Norwegian economy and economic policy that will be presented to the IMF’s Executive Board.

theoslotimes
Norway'seconomy economy
If you notice an error, highlight the text you want and press Ctrl + Enter to report it to the editor
I recommend
No recommendations yet

Comments

Post your comment to communicate and discuss this article.

Society
Nearly 8000 foreigners took the Norwegian test Nearly 8000 immigrants can have a well-deserved break after completing the last Norwegian examinations of the year. The test is becoming increasingly important.   – Norwegian language skills open the door to integration, education and jobs, says Director in Competence Norway, Gina Lund. The Norwegian test has gained an increasing role, and is, among other things, entry conditions for both residence permits and...
Society
Judgement day for Janne Jemtland’s husband The prosecutor wants the husband of Janne Jemtland behind bars for 18 years for the murder of his spouse. He, however, demands an acquittal. The sentencing is due on Monday morning.   At 10 am on Monday, District Court Judge, Trond Christoffersen, calls for order in court for the last time in the Janne Jemtland case. The Hedmark District Court will then provide an answer to the question that everyone asked before...
Society
The man charged with sending a bomb to the police in Ski has been in conflict with them for a long time. He denies having anything to do with the bomb.   When he was detained for four weeks on Saturday, the man appealed the decision on the spot. His lawyer, John Christian Elden, told VG newspaper that his client does not acknowledge having sent the package containing the bomb. “The basis for imprisonment is primarily the risk that there may have been other...
Society
In Norway, there are far more believers than in Denmark, Sweden, and Finland, according to a new survey.   According to the study by the independent American think-tank Pew Research Center, 17 per cent of Norway’s citizens are strong believers. The same is true for 8 per cent of Danes, 10 per cent of Swedes and 13 per cent of Finns. In the survey, the degree of religiosity is measured in all the European countries. Romania is at the top with 55 per cent st...
Society
PST investigate threats against Minister of Justice, Wara The Special Branch (PST) investigates serious threats to Justice Minister Tor Mikkel Wara (Progress Party). His house and car have been tagged, and his car may have been attempted to be ignited.   – We have started investigating threats against Government officials this afternoon. We are in an initial phase of the investigation. There are aspects of the matter that make us look very seriously at it,...
Society
Norwegian Fisheries Directorate wants a ban on cod fishing in entire Oslofjord The Norwegian Fisheries Directorate proposed a ban on fishing for cod from Telemark to the Swedish border, which means that the entire Oslofjord will be subject to the ban.   The proposal is a follow-up after the Directorate issued a consultation proposal earlier this year. The reason for the proposal given was that measures must be taken because the state of the coastal and fjo...
Society
The Police House at Ski is evacuated because of a suspicious parcel in the public area.   The bomb squad is on the spot to investigate the object. It is uncertain whether the package has arrived via the mail or has been delivered at the reception. There is no danger to the area outside the police house, writes Dagbladet. The customer reception at the police house in Ski in Akershus is temporarily evacuated, writes the Eastern Police District on Twitter. –...
Society
Prime Minister Erna Solberg does not want to change abortion practice in Norway, but will remove “discriminatory element in the law”, according to Dagens Næringsliv. Solberg has been criticized for her willingness to negotiate changes in the Abortion Act, as she needs the support of Christian Democrats (KrF) for her bourgeois government. In an interview with the newspaper, Solberg says that women should still be able to use abortion right after 12 weeks if...
Society
The Norwegian cheese Fanaost was named as the world’s best cheese during the World Cheese Awards in Bergen on Friday night. A total of 3,472 cheeses from all over the world participated in the competition to become the world’s best. Norwegian cheese Fanaost, from the producer Ostegården in Bergen, won the competition, writes NRK. Fanaost, according to the manufacturer, is a mild, round and semi-solid cheese that reminds Gouda, made from pasteurized cow mil...