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
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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.