Norway: 2023 Article IV Consultation-Press Release; and Staff Report
IMF Staff Country Reports, July 26, 2023
Source details
- Canonical URL
- Norway: 2023 Article IV Consultation-Press Release; and Staff Report
Other formats
Bibliographic details
- Published: July 26, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400246791.002
Overview
- Publication date: July 26, 2023
- Core finding: Norway grew strongly in 2022 but the pace of output growth receded somewhat in 2023.
- Main drivers: Record-high energy and food prices and much higher interest rates put pressure on households’ purchasing power; windfall gains from high petroleum and natural gas prices have so far countered global headwinds.
Growth and Outlook
- Mainland gross domestic product growth is still expected to be positive, supported by strong business investment and exports.
- Norway experienced one of the highest growth rates among advanced economies in 2022.
- Current growth trajectory: continuing but at a more modest pace.
- Risk assessment: risks remain balanced.
Inflation, Monetary Policy, and Household Pressure
- Key pressures: record-high energy and food prices; much higher interest rates.
- Impact: reduced households’ purchasing power.
Financial Sector and Risks
- Banking system: described as strong.
- Risk environment: tightening global conditions pose risks; risks to financial stability appear to be broadly manageable but continued vigilance is needed given the heightened uncertainty.
Structural Reforms and Labor Market
- Progress on structural reforms: piecemeal.
- Noted steps: increased vocational training and the planned introduction of a youth guarantee scheme aimed at further upskilling the workforce.
Subjects and Keywords
- Subject: Central bank policy rate, Consumption, Financial services, Fiscal policy, Fiscal stance, Inflation, International organization, Labor, Labor markets, Monetary policy, National accounts, Prices
- Keywords: Central bank policy rate, Consumption, Fiscal stance, Global, Inflation, inflation expectation, inflation risk, Labor markets, liability positions vis-a-vis nonresident, mainland GDP growth, money market rate
Content in this bundle
- 1norea2023001