The Revised National Budget 2018

This page contains information in English about Norway's Revised National Budget for 2018, presented to the Storting as Report no. 2 (2017-2018) on 
15 May 2018. The Revised National Budget presents the Government's programme for the implementation of economic policy and projections for the Norwegian economy.

Norwegian Ministry of Finance

Siv Jensen
Minister of Finance
May 2018

Information in English

Press Release

No.:

13/2018

Date:

15.05.2018

Contact:

Press telephone , Telephone +47 22 24 44 11

Outline of economic developments and fiscal policy

In the 2018 Revised National Budget growth in mainland Norway is projected to be 2.5 per cent this year and 2.6 per cent next year, unchanged from the forecasts given in the 2018 National Budget. This is above the historic trend, and capacity utilisation will increase and remain close to normal levels next year. The labour market has improved faster than projected.

The Revised National Budget for 2018 upholds the neutral fiscal policy stance from the adopted 2018 budget, which was approved by Parliament in December. Spending of petroleum revenues is now estimated to NOK 225.5 billion in 2018, as measured by the structural, non-oil deficit. This is NOK 5.6 billion lower than forecasted in the adopted budget. The structural budget deficit is at the same time adjusted down for 2017, and the estimated fiscal impulse is thereby still less than 0.1 per cent of trend GDP for mainland Norway.

The petroleum revenue spending is estimated to 2.7 per cent of the capital of the Government Pension Fund Global by the beginning of 2018, revised down from 2.9 per cent in the adopted budget. The revision should be read in the light of a substantial rise in the Funds market value by the end of last year.

Table: Selected key figures in the Revised National Budget 2018

 

2017

      2018

     2019

 

 

RNB 20181

NB182

RNB 2018

NB18

Real gross domestic product (mainland Norway)3

1,8

2,5

2,5

2,6

2,6

Employement, persons3

1,1

1,3

1,1

1,1

1,1

Unemployment rate (LFS)

4,2

3,8

4,0

3,7

3,8

Structural, non-oil deficit, billion NOK (constant 2018 NOK)

219,2

225,5

231,1

-

-

Fiscal impulse4

0,2

0,1

0,1

-

-

Spending of petroleum revenues5

2,8

2,7

2,9

 

 

1) 2018 Revised National Budget.*
2) 2018 National Budget.
3) Change from previous year in percent.
4) Structural, non-oil budget deficit measured in percent of trend GDP for mainland Norway. Change from previous year in percentage points.
5) Structural, non-oil budget deficit measured in per cent of the capital in the Government Pension Fund Global at the beginning of the year.

Sources: Statistics Norway and Ministry of Finance.