## Norway: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Norway

_IMF Staff Country Reports, September 18, 2024_

## Source details

**Canonical URL:** [Norway: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Norway](https://www.imf.org/en/publications/cr/issues/2024/09/17/norway-2024-article-iv-consultation-press-release-staff-report-and-statement-by-the-555052)

## Other formats

- [Markdown version](/en/publications/cr/issues/2024/09/17/norway-2024-article-iv-consultation-press-release-staff-report-and-statement-by-the-555052/index.md)
- [Structured JSON version](/en/publications/cr/issues/2024/09/17/norway-2024-article-iv-consultation-press-release-staff-report-and-statement-by-the-555052/index.json)
- [Bundle manifest](/en/publications/cr/issues/2024/09/17/norway-2024-article-iv-consultation-press-release-staff-report-and-statement-by-the-555052/bundle-manifest.json)

## Bibliographic details
- Published: September 18, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400288876.002

---

### Executive summary and core findings
- Boosting labor supply, containing public expenditure pressures, and raising productivity are required for Norway to continue its strong economic performance and preserve its welfare model.
- A recent White Paper by the Ministry of Finance is identified as rightly raising these key long-term issues for Norway’s economy.
- Real gross domestic product growth slowed in 2023 and is expected to gradually rebound in the near term as private domestic demand strengthens supported by higher real incomes.
- The financial system appears resilient and banking system buffers are strong.
- Tight macroprudential policies should remain in place to mitigate systemic vulnerabilities.
- Long-term fiscal challenges should be more forcefully addressed.
- Norway has the largest proportion of the population on disability-related benefits among the organisation for economic co-operation and development countries, and reforming costly and distortionary social benefit systems is possibly the most important and politically difficult reform pending.
- Although Norway boasts one of the highest levels of labor productivity among its peers, it has slowed faster than in other countries.

### Policy recommendations and structural priorities
- Boost labor supply:
  - Reform social benefit systems, with priority on disability-related benefits that have high take-up relative to OECD peers.
- Contain public expenditure pressures:
  - Address long-term fiscal challenges more forcefully to preserve fiscal sustainability and the welfare model.
- Raise productivity:
  - Improve conditions to facilitate sectoral reallocation.
  - Promote innovation and technology adoption to reverse the recent slowdown in labor productivity.
- Maintain financial stability stance:
  - Keep tight macroprudential policies to mitigate systemic vulnerabilities given the generally resilient financial system and strong banking buffers.

### Risk environment and outlook
- Near-term outlook:
  - Real GDP growth: slowed in 2023; expected to gradually rebound in the near term as private domestic demand strengthens supported by higher real incomes.
- Financial sector:
  - Systemic vulnerabilities should continue to be mitigated via macroprudential policy despite resilience and strong buffers.
- Structural risks:
  - High share of population on disability-related benefits poses fiscal and labor market challenges.
  - Slowing labor productivity relative to peers risks longer-term growth potential unless addressed.

### Subject focus and keywords
- Subject: Central bank policy rate, Expenditure, Financial services, Inflation, Labor, Labor markets, Prices
- Keywords: Central bank policy rate, consumer price inflation, Global, holdings of SDR, Inflation, inflation expectation, inflation pressure, Labor markets, monetary policy stance

### Publication and metadata
- Publication title: Norway: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Norway
- Publication date: September 18, 2024
- Pages: 84
- Volume: 2024
- Issue: 297
- Series: Country Report No. 2024/297
- DOI: https://doi.org/10.5089/9798400288876.002
- Stock No: 1NOREA2024001
- ISBN: 9798400288876
- ISSN: 1934-7685

*International Monetary Fund. Norway: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Norway. September 18, 2024.*

---

## Content in this bundle

- **1norea2024001-print-pdf**
  - [1norea2024001-print-pdf (Markdown version)](/-/media/files/publications/cr/2024/english/1norea2024001-print-pdf.pdf.md){rel="alternate" type="text/markdown"}
  - [1norea2024001-print-pdf (PDF)](/-/media/files/publications/cr/2024/english/1norea2024001-print-pdf.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/cr/issues/2024/09/17/norway-2024-article-iv-consultation-press-release-staff-report-and-statement-by-the-555052_