[ad_1]
– When I assumed the position of Minister of Finance, employment was increasing. Unemployment was low and declining. The growth was good, Finance Minister Jan Tore Sanner tells NTB.
He was barely two months behind him in the Finance Minister’s chair when Norway was closed. Since then, almost everything has been about ensuring that the Norwegian economy recovers from the pandemic crisis.
– It is strange to have been Minister of Finance for a year and feel that it has been for several years. I have submitted seven crisis packages, in addition to budgets, says the conservative veteran.
Also read: The world enters 2021 with distance from each other and with the hope of better times
Best in class, almost
Sanner can now celebrate a major party winner. Only two countries in Europe have a smaller downturn in the economy than Norway in 2020, namely Lithuania and Turkey, according to a recent OECD report.
But even though Statistics Norway estimates a growth of 3.7 percent in 2021, Sanner claims that we are still in the middle of the crisis. The fall of 2020 can be recovered during 2021, but we will remain lower than we would have been without the pandemic, he says.
– This means that the pandemic will affect the Norwegian economy for several years. We can’t say it’s over now, no way, says Sanner.
– When I can still say that I am optimistic, it is because we have managed to maintain control of the infection, that we have managed to maintain activity, despite the fact that many industries and companies are very affected.
Sanner believes the key has been that Norway has prioritized health first. Countries that have prioritized reducing infection have also managed to increase economic activity as quickly as possible.
Also read: Støre reassures NHO boss with EEA guarantee
Restless for 2021
The hope for 2021 is that mass vaccination will eventually break the pandemic. The forecast is that it will provide strong economic growth and a consumer feast, as most Norwegians have a lot of money to spend when the society reopens.
However, the Finance Minister urges caution and raises three main concerns:
* That unemployment gets stuck. In December, 193,300 completely unemployed, partially unemployed and job seekers registered for the measures in Nav.
* A wave of bankruptcies among companies that had a weak position in 2020, have taken out large loans and will now repay deferred taxes and fees. Some industries may feel that the market has disappeared.
* Young people who have paid a high price during the pandemic, with a lot of isolation, homeschooling and digital study time at home alone in the bedroom.
Sanner points out that countless teachers and volunteers have gone much further than might be expected.
– Still, I feel a knot in my stomach in early 2021, because we know that many young people have paid a high price.
More crisis help
This year, the government has spent an additional 130 billion oil on crisis management. Next year, NOK 40 billion will be set aside for temporary corona measures, in addition to a budget that is geared towards creating activity in the economy.
And there will be more, Sanner guarantees, but he doesn’t know exactly how much yet. The unpredictability of the pandemic means that the government is planning different scenarios starting on March 1, when the current broad compensation scheme expires.
Sanner emphasizes that compensatory measures should be used in a situation where strict infection control measures lead to a shutdown of the economy.
– But when we begin to make infection control measures more flexible, there are other types of measures that are correct and important. Then it is the activity that must be stimulated, he says.
Also read: NIPH is concerned that infection rates are not decreasing
[ad_2]
