Trade wars and chaotic Brexit could spoil the autumn budget

Prime Minister Erna Solberg.Photo: Håkon Mosvold Larsen / NTB scanpix

The four government parties embark on the latest round of budget negotiations with an economy that is experiencing good days. But dark clouds threaten the horizon.

These are good times. Good numbers are ticking in steadily, Prime Minister Erna Solberg (H) said when she met the press along with party leaders from Frp, KrF and Venstre on Wednesday morning.

The four parties are now embarking on a two-day budget conference aimed at getting the latest details in place in the draft state budget for 2020.

The backdrop is a situation where economic growth is above normal, where investment is increasing, and where unemployment has fallen to its lowest level in ten years.

“But there are uncertain times around us,” Solberg warned.

Two conditions are especially threatening. One is the risk of escalating the US-China trade war. The second is the risk of the UK crashing out of the EU this autumn without a deal.

“The chaos Brexit will create will have an impact on the entire economy, at least in the beginning,” Solberg said.

According to her, this uncertainty makes it even more important to show moderation in the state budget, so that Norway has money in reserve should things go wrong.

© NTB Scanpix / #Norway Today

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