Presenting the revised National Budget for 2012, Finance Minister Sigbjørn Johnsen said Economic activity in Norway has held up well in 2012, despite the global economic slowdown.
He said unemployment is expected to remain at the current low level.
In itsrevision of the 2012 Budget, the Government emphasizes the need for fiscal constraint to reduce the pressure on the exchange rate and exposed mainland industries. Increasing interest rates with widening spreads could lead to a stronger krone exchange rate. That would be most unfortunate for industries exposed to international competition, Finance Minister Johnsen says.
Mainland-GDP in 2012 is forecast to grow by 2¾ per cent, on par with the average for the last 40 years. Next year a further pick up is expected, to 3 per cent. Growth in private consumption is high. Activity in the business sector is high, especially in the petroleum subcontracting sector. Significant growth in petroleum sector investments is expected also this year. Employment has increased since the spring of 2010, and is expected to climb further both this year and next. Unemployment is forecast to remain at 3¼ per cent of the labour force this year.
In the revision of the 2012 Fiscal Budget the Government propose a strengthening of the budget balance compared to the approved 2012 budget. Tax revenues are estimated to be higher and expenditures somewhat lower than last autumn. Also, the capital in the Government Pension Fund Global is estimated to be higher. Thus, the use of petroleum revenues, as measured by the structural, non-oil budget deficit, has been brought further below the 4 per cent path of the Fiscal Policy Guidelines.
In the new budget, the Government has allocated NOK 770 million to be used towards clearing and securing the office buildings which were badly damaged in the July 22nd bomb attack. This comes in addition to the nerly NOK 650 million granted just before Christmas.
In addition NOK 335 million will be spent on imprving security in and around the Government headquarter.
NOK 720 million will be spent on replacing the Hercules Air Force transport plane which crashed at Kebnekaise in Northern Sweden earlier this year.
(NRK/Press release)
The International Monetary Fund (IMF) has presented its views on the Norwegian economy and Norwegian economic policy, and concludes that the Norwegian economy continues to perform well.(Photo: Finance Minister Sigbjørn Johnsen)..
The tax rates will be cut, says Prime Minister Jens Stoltenberg. He is not pleased with the way the tax system that he has been running for almost eight consecutive years.
..
Several economy professors think the government should consider selling their shares in Statoil.
..
The Executive Board of the Norwegian Central Bank (Norges Bank) has decided to keep the key policy rate unchanged at 1.5 percent. (Photo Norges Bank Deputy Governor Jan Qvigstad)
..
In presenting the revision of the 2013 Fiscal Budget, Finance Minister Sigbjørn Johnsen said the Government proposes a slight strengthening of the budget balance compared to the approved 2013 budget...
Prime Minister Jens Stoltenberg has announced that the Norwegian Government proposes tax changes from 2014 to strengthen competitiveness and profitability, and stimulate investments in the mainland economy...
The Government will spend NOK 750 million on a package of measures to assist the Norwegian forestry sector...
When the oil is no longer around to finance Norwegians' salary level, people's wages may have to be reduced by as much as 25 percent, predicts economist Knut Anton Mork.
..
Speaking at ILO's regional conference in Oslo, Norwegian Priem Minister Jens Stoltenberg said the crisis in Europe is dramatic. A financial crisis has now turned into a jobs crisis...
Prime Minister Jens Stoltenberg says Norway and Russia are continously developing a closer cooperation in important fields.
..
The Executive Board of the Norwegian Central Bank (Norges Bank) has decided to keep the key policy rate unchanged, at 1.5 per cent. The record low key policy rate has remained unchanged since March 14th last year.
..
As the Government began their annnual budget conference, Prime Minister Jens Stoltenberg said he is pleased with the development of the Norwegian economy, but sees challenges ahead in the work to form the budget for 2014.
..
Foreign and domestic demand, excluding petroleum activities, grew modestly in the 4th quarter of 2012. The gross domestic product (GDP) of mainland Norway was up 0.3 per cent in the 4th quarter.
..
