Oil Wealth Stimulus Bash in Norway Nearing Tipping Point
- Government has tighened fiscal policy rule on oil wealth
- Rising krone would also tighten government’s spending limit
Pedestrians pass tramlines and commercial properties in the city center in Oslo, Norway, on Tuesday, Oct. 6, 2015. The nation could as soon as next year start making withdrawals from its massive $830 billion sovereign wealth fund, which it has built over the past two decades as a nest egg for 'future generations.'
Photographer: Krister Soerboe/BloombergThis article is for subscribers only.
The great Norwegian stimulus engine is gearing down.
The growth of Norway’s $910 billion sovereign wealth fund and oil income won’t be enough to keep up with the economy to match previous years’ record stimulus, meaning the mechanism for phasing in oil income will struggle to stay expansionary.