IMF: Expect higher growth in the Norwegian economy

Economic growth will strengthen gradually and real incomes will increase, improving most households’ purchasing power. This is one of the conclusions of the International Monetary Fund (IMF)’s yearly assessment of the Norwegian economy and Norwegian economic policy, which was presented at the Norwegian Ministry of Finance in Oslo today.

The IMFs concluding statement highlights that the Norwegian labour market has remained resilient, and that inflation is declining. Productivity is higher in Norway than in many other countries, but growth has been slower in recent years. The IMF concludes that the financial system is stable, although recommends continued vigilance for financial risks.

"The IMF shares our view of economic growth increasing and household finances improving. This is in line with the government’s ambition that people will be better off and feel secure about their own finances", says Minister of Finance Trygve Slagsvold Vedum (Centre Party).

According to the IMF, Norway needs to boost labour participation, reduce reliance on health related benefits, and raise productivity growth. The IMF underlines that Norway is in a favourable position to meet future challenges, thanks to stable structures, a strong fiscal position and robust banks, along with a comprehensive public services and welfare benefits, and versatility to implement change.  

An IMF delegation has spent the last week meeting Norwegian authorities, academic and financial institutions and employer and labour organisations. Their assessment was presented to State Secretary Erlend Grimstad (Centre Party) in the Ministry of Finance today. A more comprehensive report will be presented to the IMF board later this year.