OECD on the Norwegian economy: High activity and lower inflation

OECD today published their biannual survey of the Norwegian economy, with recommendations on how the government should face important challenges ahead. The survey points to increasing activity in the Norwegian economy. It also emphasises the importance of an efficient public sector to meet ongoing economic developments.

The OECD’s Economic Survey estimates that growth in the Norwegian economy will pick up next year, while the labour market will remain tight. The report highlights that while Norway benefits from high GDP per hour worked, productivity growth has been lower over the past decade compared to many other countries. Additionally, while employment levels remain high, many people rely on various welfare benefits.

"The OECD’s survey shows that we have a solid and egalitarian economy in Norway, with a good welfare system and strong public finances. Norway is a country with a high employment level, small wage and employment differences and a high level of prosperity that provides security and opportunities for people. We will meet the challenges of the future within the framework of a strong welfare state", says Minister of Finance Trygve Slagsvold Vedum (Centre Party).

This year’s survey dedicates a chapter to efficiency in the public sector, analysing various areas within public spending and investment. The OECD offers recommendations, including the need for more long-term planning in fiscal policy to address future challenges arising from an aging population and declining petroleum revenues.

"In Norway, we have good and universal public services that ensure security and welfare for our population. Prioritising spending on these areas is the right thing to do, in our view. Several of the challenges in economic policy which are highlighted in the OECD survey, are addressed in our upcoming white paper “Long-term Perspectives on the Norwegian Economy”, this Autumn. We appreciate the OECD’s thorough analyses of the Norwegian economy and will consider the advice and recommendations in the Economic Survey", says Vedum.

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