The OECD paints a picture of the Norwegian economy, where growth will remain strong this year and next. The OECD highlights that Norway is among the most prosperous economies and has one of the highest levels of equality, underpinned by sound macroeconomic management and a highly skilled workforce. 

Nevertheless, the OECD believes that weaker productivity growth and rising public expenditure are putting pressure on the economy and threatening long-term fiscal sustainability. The conflict in the Middle East will increase petroleum revenues, but at the same time drive up inflation and may weaken the value of the Norwegian pension fund.

"The OECD has delivered a report showing that Norway has a solid economy and strong public finances. The report shows, among other things, that the Norwegian economy continues to grow and that inflation has come down from its peak. But the turmoil in the world is also having an impact on the Norwegian economy. That is why the Government is continuing a responsible economic policy, with restrained spending," says Minister of Finance Jens Stoltenberg.

The OECD also makes recommendations related to structural challenges in the economy.

"Some of this reflects work the Government has already begun. We are committed to getting more people into work, renewing the public sector and reducing the regulatory burden on businesses. The Government has implemented concrete measures to increase labour force participation. These include introducing an experiment with work allowances to obtain better knowledge about work incentives, reducing the tax on work, and discontinuing the transitional benefit. In addition, a proposal for adjustments to the integration benefit has been circulated for consultation," Stoltenberg says.