Solberg: – The economy points in the right direction

Prime Minister Erna Solberg and Finance Minister Siv JensenPrime Minister Erna Solberg and Finance Minister Siv Jensen.Photo: Cornelius Poppe / NTB scanpix

Solberg: – The economy points in the right direction

Better prospects for the Norwegian economy leads to the Government easing up on the incentives and are therefore announces less spending in next year’s state budget. This according to the Prime Minister and the  Minister of Finance.

 

– It has been vital to push the throttle in order to accelerate the economy. Now things are improving, Minister of Finance, Siv Jensen (FrP), stated when she attended together with the Prime Minister at a press conference just before of the current Government’s final budget conference.

– But when the economy is growing, there is also room for further incentives, she emphasized.

Jensen mentioned transport, research, education and ‘competitive tax regulations’ as examples of areas that the Government prioritises on regarding the next year’s state budget.

Better times ahead

Prime Minister Erna Solberg (H) says growth is recovering after the drop in prices, leading to a loss of close to 50,000 jobs as of yet.

– The economic arrows point in the right direction after a difficult time for the Norwegian economy. Now unemployment is declining, growth is up and more are employed, she said.

According to Solberg, this year’s development is even better than the forecasts from May when the Government presented a revised national budget.

– The mainland economy is expected to grow faster than the historical average in the year to come, she said.

Oil money

Oil money use has increased by 12.5 per cent annually in the last four years, according to the economic newspaper, Dagens Næringsliv. During the same period, the Norwegian mainland economy has increased by 1.6 per cent annually.

– It was prudent to spend a lot of money when that was needed. But when politics are working and the economy is improving, it’s right to back off, Solberg continued.

She did not however announce any change in the spending of oil money.

– We will continue our policy where withdrawals from the oil fund are capped at 3 per cent, she emphasized.

Unemployment rate down

The Labour Party has attacked the Government for lack of measures against unemployment, The arrows are pointing in the right direction even here, according to Solberg.

– Unemployment is dropping everywhere in Norway, including southern and western Norway. But the job is not done. Unemployment is still high in the areas hit by the oil price shock, she says.

both Jensen and Solberg agree that the facts show that it was correct for the Government to prioritize tax cuts in their budgets.

– The Government’s policy works, the Prime Minister claims.

– Interest rates are at a record low level and the currency is much weaker than before the oil price drop. Added to with lowered taxes and moderate salary settlements, this has provided companies with a bettered competitive edge, Jensen adds.

 

© NTB Scanpix / Norway Today

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