AMWatch

Norway to spend record USD 50bn of oil wealth on recovery

Norway is relying on its USD 1.3 trn sovereign wealth fund more than ever, as the country ratchets up spending without turning to bond markets to provide economic relief from the pandemic.

Prime Minister Erna Solberg | Photo: HEIKO JUNGE/NTB

The government of Prime Minister Erna Solberg, facing an election in September, is raising this year’s so-called structural non-oil fiscal deficit by more than 9 percent to almost USD 50bn (NOK 403bn) it said on Tuesday. Government withdrawals, as a share of the world’s biggest wealth fund, will reach 3.7 percent, compared with the central bank’s estimate of 3.3 percent.

"Fundamentally, it shows that the government sees a bigger need for fiscal support throughout this year," Handelsbanken analyst Marius Gonsholt Hov said in a client note.

Read the whole article

Get 14 days free access.
No credit card required.

Get full access for you and your coworkers.

Start a free company trial today

More from AMWatch

SSGA launches HY index fund with ESG screens in effort to convert active investors

95 percent of active global high-yield managers struggle to consistently add value net of fees, according to the world's fourth-largest asset manager ahead of launching a global HY index fund. However, a recent survey by consultancy Kirstein showed a vast majority of Nordic investors preferring their HY portfolios actively managed.

Further reading

Related articles

Latest news

See all jobs

Latest news from FinansWatch (dk)

Latest news from EnergyWatch

Latest news from ShippingWatch