(Bloomberg) — Norway’s economy will grow at a slower pace than previously estimated, according to forecasts published by the finance ministry on Sunday.
(Bloomberg) — Norway’s economy will grow at a slower pace than previously estimated, according to forecasts published by the finance ministry on Sunday.
Mainland gross domestic product will grow by 0.9% this year and 1.4% next year, down from forecasts in the budget in October of 1.7% in 2023 and 2.0% in 2024. An estimate for registered unemployment this year was revised up to 1.9% from 1.7% earlier, and will now reach 2.0% in 2024.
The revisions come as the government starts work on next year’s budget at a conference outside Oslo. The Labor-Center government is seeking to trim spending of Norway’s oil and gas wealth to avoid fueling inflation as it faces higher than expected growth in prices and wages.
“Although higher prices have dampened purchasing power for many households, developments in the Norwegian economy have been stronger than we anticipated going into this year,” Finance Minister Trygve Slagsvold Vedum said in the statement on Sunday. “We have a good starting point to tackle the challenges we are facing and to bring inflation down without unduly affecting employment.”
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.