Norway’s minority Labour-led government has proposed increasing withdrawals from the country’s sovereign wealth fund next year to support public spending and fund government programmes.
The government said on Wednesday that it plans to withdraw 608.4 billion Norwegian crowns, worth about $63.6 billion, from the fund in 2027. This compares with a revised withdrawal of 583.4 billion crowns in 2026.
The proposed budget will require support from four centrist and left-wing parties as the government seeks to reach an agreement on next year’s spending plans.
Economic projections released alongside the budget showed that gross domestic product excluding the oil industry is expected to grow by 1.1% this year, below the 1.7% expansion forecast in May.
Growth outside the oil sector is projected to increase to 1.7% in 2027, slightly above the previous estimate of 1.6%.
The government said the proposed budget is expected to have a neutral impact on economic activity next year.
Core inflation is forecast at 3.1% in 2026, down from the earlier projection of 3.2%. It is expected to ease further to 2.8% in 2027, compared with the previous forecast of 2.6%.
Meanwhile, the structural non-oil deficit, a measure used to assess government spending from the sovereign wealth fund, is projected at 2.7% of the fund’s estimated value at the end of 2026. This would be unchanged from the level recorded for the current year.
Goodness Anunobi
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