Norway: 2011 Article IV Consultation: Staff Report; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Norway

IMF Staff Country Reports, February 2, 2012

Source details

Canonical URL

Norway: 2011 Article IV Consultation: Staff Report; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Norway

Other formats

• Markdown version
• Structured JSON version
• Bundle manifest

Bibliographic details

• Published: February 2, 2012
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9781463940379.002

Executive summary and near-term priorities

• Norway’s near-term macroeconomic priority is to reduce risks arising from high-household debt by tightening macroprudential standards for mortgage lending while undertaking tax reforms to gradually reduce incentives for excessive leverage.
• Creating a stronger institutional framework for acroprudential policy would also assist risk mitigation in the future.
• With the output gap closing, fiscal tightening is needed over the medium term in the central scenario to rebuild precautionary buffers and ensure that fiscal guidelines are met on average over the cycle.

Macroprudential and housing sector policies

• Tighten macroprudential standards for mortgage lending to reduce risks from high-household debt.
• Undertake tax reforms to gradually reduce incentives for excessive leverage.
• Strengthen institutional framework for acroprudential policy to assist future risk mitigation.

Fiscal policy recommendation

• Fiscal tightening is needed over the medium term in the central scenario to:
  • Rebuild precautionary buffers.
  • Ensure that fiscal guidelines are met on average over the cycle.

Subjects and keywords (as listed)

• Subjects: Banking, Financial institutions, Financial sector policy and analysis, Housing prices, Inflation, Loans, Macroprudential policy, Mortgages, Prices
• Keywords: CR, GDP, Global, holding, Housing prices, Inflation, ISCR, liability positions vis, Loans, Macroprudential policy, mainland GDP, mortgage interest payment, Mortgages, rate, statistics Norway, vis nonresident

Content in this bundle

• _cr1225 — Selected Economic Indicators and Policy Assessment
  • _cr1225 — Selected Economic Indicators and Policy Assessment (Markdown version)
  • _cr1225 — Selected Economic Indicators and Policy Assessment (PDF)