Good growth in the Norwegian economy

Prime Minister Erna SolbergHurdal.Prime Minister Erna Solberg.Photo : Cornelius Poppe / NTB scanpix

The Norwegian economy is doing well. More people come to work, and unemployment is going down. These are the conclusions of the Ministry of Finance before the Government’s budget conference.

The growth in the mainland economy has picked up steadily in recent years, and last year was higher than its long-term trend for the first time in three years, the ministry writes in a press release.

Investments in on-shore companies have picked up markedly in recent years and have not been higher for ten years ; the employment rate is rising and the projections ahead indicate that it will grow faster than the working-age population.

The Ministry of Finance also points out that registered unemployment is well below the average for the last 20 years, and that unemployment in February was the lowest in ten years.

Higher purchasing power among Norwegian households and increased activity in Norwegian and international petroleum activities, are expected to contribute to further growth in the Norwegian economy, the ministry believes.

In its estimates, the Ministry assumes that private consumption, which amounted to NOK 1.533 billion in 2018 according to preliminary figures, will increase by 2.4 per cent in 2019 and by 2.8 per cent next year.

The projections also show that public consumption will increase by 1.5 per cent in 2019, at the same level as last year.

The projections also show a sharp increase in oil recovery and pipeline transport, up from 3.3 per cent last year to 12.9 per cent this year, and that gross national product is projected to increase by 2 per cent this year and by 2.4 per cent next year.

The figures form the basis for the government’s budget conference starting at Hurdalssjøen Hotel on Tuesday. The conference will clarify the main lines of next year’s state budget.

Both Minister of Finance Siv Jensen (FRP) and Prime Minister Erna Solberg (H) have warned that the room for maneuver in next year’s state budget will however be much narrower than previously.

© NTB Scanpix / #Norway Today