Norway’s Oil Fund chief issues warning: “Things don’t grow forever”

Nicolai TangenPhoto: Torstein Bøe / NTB

The returns from Norway’s Oil Fund won’t continue to grow forever, the fund’s chief Nicolai Tangen warns.

“We have now had 25 years of good returns. But there will be a period where we have to expect lower returns,” he told news bureau NTB.

He didn’t make any predictions about how big the Oil Fund will be in the future. 

He also didn’t want to speculate how the corona situation will affect the stock exchanges. 

However, he warned that Norwegians shouldn’t expect return figures they have seen over the last 25 years to continue. 

“That’s not how things work,” Tangen noted.

Crisis spending

During the Confederation of Norwegian Enterprise’s (NHO) annual conference on Thursday, Tangen pointed out that the Oil Fund has accounted for 25% of the state budget during the corona crisis. 

That amounts to an average of NOK 7,000 per Norwegian per month during the crisis period.

But Tangen doesn’t want to interfere with how the government and the Norwegian parliament (Storting) choose to spend the money.

“I have no warning for the politicians,” Tangen told NTB.

However, he did make a comment that sounded like a warning.

“It is just important that everyone is aware that things do not continue to grow forever,” he concluded.

© NTB Scanpix / #Norway Today


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