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IMF: Norway's economy is developing well despite the Euro storm

Tuesday, 22 November 2011
The Norwegian economy continues to perform well and growth is expected to continue at a "moderate pace" while inflation will gradually rise to the target expected in the two years ahead.

This is according to the International Monetary Fund, in a report on Norway on Tuesday, according to Bloomberg News.
"The expansion will mainly be driven by domestic demand, given the strong wage growth, continued momentum in the housing market and sluggish growth among the country's major trading partners, "the IMF report.

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The euro area debt crisis, household debt and house prices poise to pose a risk. Risk weighting for mortgage loans may be raised to dampen the heating of the sector, according to the IMF.
Monetary policy should be the first line of defence for Norway and a tighter fiscal policy would allow an easier monetary policy, according to the IMF.

The IMF goes on to say that Norway's neutral budget is appropriate for 2012 and that the country has room for fiscal tightening in the medium term. This tightening should begin in 2013 and Norway should consider spending less than 4 percent of the oil fund, according to the IMF.
By Scancomark.se Team



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Key Norwagian Facts
Official Name Kingdom of Denmark
King Harald V
Prime minister Jens Stoltenberg
Population 4.7 Million
Capital City Oslo
Monetary Unit Norwagian Kroner (NOK)
  1 NOK = 100 ore
Domain Name .no
Int. Dialling Code +47
Official Language Norwagian
Religion Christianity
Main stock market Name Oslo B�rs
Internet Speed 4.2 Mbps (2009)
Vital Links
Statistics Norway
Government and Ministry
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