Looking for a specific product?

Make a search for products & suppliers, articles & news.

IMF presents its views on the Norwegian economy

Today a mission from the International Monetary Fund (IMF) presented its views on the Norwegian economy and Norwegian economic policy. The mission is in Oslo as part of its article IV-consultation with Norway.

"I am pleased that the IMF broadly supports the economic policies implemented by the Norwegian government. The mission’s statement is an important contribution to our domestic debate on economic policies”, says Finance Minister Sigbjørn Johnsen.

 

The IMF concludes that the Norwegian economy continues to perform well amidst a turbulent global economy.  Output is now higher than before the financial crisis in 2008 and unemployment remains low. Looking ahead, the IMF mission expects the moderately paced growth in the mainland economy to continue, driven mainly by domestic demand. The statement emphasizes that Norway is better placed than many in Europe to weather an intensification of eurozone stress. The Norwegian economy is nevertheless vulnerable to loss in confidence, lower export demand, reduced oil prices, and to strains in the international market for bank financing.

 

"Norway cannot insulate itself from what is happening abroad. The best protection is to keep our own house in order. I agree with the IMF that a tight fiscal stance will protect our competitiveness, and allow monetary policy to be our first line of defense if international conditions worsen, " says Sigbjørn Johnsen.

 

In the statement, the IMF highlights the risks stemming from high household debt and elevated house prices. The mission argues that macroprudential policies should be employed to reduce these risks, and points to i.a. the Financial Supervisory Authority’s guidelines for mortgages, higher risk weights for bank’s mortgage portfolios, and strengthening of bank capital through restraining dividends and remuneration. The mission also gives advice on how the institutional framework for macroprudential policy may be organized in Norway.

 

"It is important to strengthen the surveillance of the whole financial system to promote financial stability. The Ministry of Finance aims to formalize Norway’s framework for macroprudential policies by mid-2012", says Sigbjørn Johnsen.

 

The mission finds the broadly neutral fiscal stance in the 2012 budget proposal appropriate, given heightened global risks and conditional on macroprudential tightening. The IMF also notes that Norway faces long run fiscal challenges, due to increasing spending on healthcare, as well as age and disability pensions. This underlines the need for further entitlement reforms aimed at bolstering employment.

 

In the coming months, the IMF staff will complete a more extensive report on the Norwegian economy and economic policy that will be presented to the IMF’s Executive Board.

Related news

Latest news

Eimskip strengthens its worldwide forwarding services by acquiring the logistics company SHIP-LOG A/S in Denmark

Eimskip has strengthened its position in worldwide logistics services by acquiring 75% of the freight forwarding company SHIP-LOG. 

For Sale Assets from the former BMV LAKSEVÄG YARD in Bergen, Norway!

For Sale Assets from the former BMV LAKSEVÄG YARD in Bergen, Norway! The entire shipbuilding and fabricating facility is closing and more than 500 lots is on sale.

Servogear CPP for Seasight II - Future of the Fjords

We are proud to announce that Servogear has been chosen for the delivery of Servogear...

TechnipFMC Signs Agreement with Pall to Supply Slurry Oil Filtration Systems for Fluid Catalytic Cracking Units

The associated activities will be managed by TechnipFMC Process Technology’s center in Houston,

10 Million kroner for verification funding

The Norwegian Research Council has granted 10 million...

Hilti acquires Oglaend System Group

Oglaend System’s headquarters will remain in Klepp, 

DOF Subsea AS ("DOF Subsea" or the "Company") today announces its intention to launch an initial public offering (the "IPO") of its ordinary shares and to apply for a listing on Oslo Børs

NOT FOR DISTRIBUTION OR RELEASE,

DOF Subsea North America extends charter for Jones Act Compliant vessel Harvey Deep Sea

The Harvey Deep Sea Vessel is a Multi-Purpose DPII Construction,

Untrue rumours about an on-going incident at the Halden Research Reactor in Norway

The Norwegian Radiation Protection Authority has become aware that stories about an ongoing incident involving a “meltdown” at the Norwegian Institute for Energy Technology (IFE) reactor situated in Halden are currently ci...