On April 26, a delegation from the International Monetary Fund (IMF) presented its assessment of the Norwegian economy and economic policy. The delegation met with the Norwegian authorities, academia and working life. In June, the IMF board will present an important report.
It is estimated that GDP growth on the European continent will amount to 3,2%
The IMF delegation expects a solid recovery in the Norwegian economy as infection control measures are relaxed. It is estimated that in 2021, GDP growth on the European continent will amount to 3,2%. The pre-crisis level will therefore be rebuilt at the end of this year. The estimates assume, among other things, that vaccinations will proceed as planned.
- I noticed that the IMF delegation believes that thanks to its policy the government has succeeded in reducing infection and economic slowdown - says Finance Minister Jan Tore Sanner.
Norway has dealt with coronavirus pandemic - IMF delegation believes public spending must fall when society reopens
The delegation supports the government's fiscal policy during the pandemic and believes public spending must decline when society reopens. As the economy recovers, it is advisable to gradually reduce fiscal policy measures and increase their targeting, but authorities must be ready to implement new emergency measures should the pandemic escalate again.
– I am glad that the IMF supports the government's emphasis on including vulnerable groups in life vocational and the importance of education and skills development programs. I also agree that we cannot lose sight of the longer-term structural challenges. The challenges we faced before the pandemic - climate, aging and integration - have not diminished, says the Minister of Finance.
Banking sector good coped with the pandemic and changes in the regulations on counteracting money laundering and terrorist financing
The IMF delegation believes that the banking sector handled the pandemic well and supports the adjustments made to the anti-money laundering and anti-terrorist financing legislation. He points out that household debt levels, commercial property bank loans, and the fact that we have not yet seen the full consequences of the pandemic, could spell uncertainty for the banking sector and financial stability.
The IMF delegation positively assesses Norway's goals and the use of instruments in climate policy.
– I agree with the IMF when they say that implementing climate policy is important. Climate goals Norway is ambitious and important is that they should be implemented in the most cost-effective way possible, concludes Sanner.
The delegation of the International Monetary Fund was headed by Peter Dohlman.
