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Erna Solberg’s government expects a continued decline in the continental economy this year, but predicts a 4.4 percent rise next year. Shows recent estimates in the state budget for 2021.
Here are Prime Minister Erna Solberg and Finance Minister Jan Tore Sanner at the Storting in connection with the recent debate on the throne.
Bjørge, Stein
Published:,
The case is being updated.
The continental economy is a term used to describe the Norwegian economy outside of the oil and gas business.
The government assumes that the mainland economy will fall 3.1 percent this year and increase 4.4 percent next.
In the revised May budget, the government estimated that the continent’s economy would shrink by four percent this year and increase by four to seven percent next year.
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The government tightens the use of oil money: it will spend 313.4 billion kronor for oil next year, equivalent to 3.0 percent of the Oil Fund.
It appears in a government message Wednesday morning, two hours before the state budget for 2021 is announced.
“The corona pandemic has caused the deepest setback in the Norwegian economy in the post-war period. In recent months, activity has picked up again, but there is still great uncertainty about future developments. Although the recovery has been faster than we imagine in May, the level of activity is likely to be lower than normal for a long time, “the government writes. in a message.
In recent years, the government has presented some key figures to its own budget, to ensure that all actors receive the same information at the same time, and to counteract leaks.
By comparison, the growth of the continental economy in 2019 was 2.3%. That was before the dramatic effect of the crown crisis, which led to the shutdown of large sectors of society in March 2020.
Other environments that estimate growth also expect a significant recession in the Norwegian economy this year. Norges Bank expects the continental economy to drop 3.6%, while Statistics Norway expects a 3.2% drop.
This is how government spending has changed so far this year compared to last year. The months of crown crisis starting in March have led to a significant increase in spending.
Directorate of Financial Management
Unemployment
The government expects an unemployment rate of 4.7% on average this year and 4.4% on average in 2021, as measured by the LFS survey. In May, the government estimated that unemployment this year would be 5.1 percent on average.
Registered unemployment is expected to be 4.9 percent this year and 3.1 percent next.
“Registered unemployment is still at a high level, although the number of unemployed has completely fallen by almost two-thirds since the peak in March,” the government writes.
Employment is now expected to fall 1.6 percent this year and rise 0.6 percent next year, according to recent government estimates.
In May, employment was expected to fall 1 percent in 2020, according to the revised national budget.
The precarious situation in May meant that the government at this time did not have an estimate of unemployment and employment growth for 2021.
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Predicts a sharp decline in the Norwegian economy
Corona is increasing its use of oil money
The government assumes a use of oil money of NOK 404.3 billion this year and NOK 313.4 billion in 2021.
The use of oil money in May was estimated at NOK 419.6 billion this year, a sharp increase over the previous year when it was NOK 245 billion.
The reason for the increase in the use of money from the Petroleum Fund is the loss of tax revenue, the increase in social security expenses and the fact that the government has set aside large funds for compensation schemes for the business community after the crisis of the crown.
Public spending has increased steadily in recent years.
Directorate of Financial Management
