Norway government trims 2026 non-oil GDP forecast

Norway Government Revises 2026 Non-Oil GDP Growth Forecast to 1.8 Percent

Norwegian Government Updates Economic Outlook Amid Global Uncertainty

Revised Growth Projections for 2026 and 2027

OSLO, March 9 (Reuters) - Norway's Labour Party government said on Monday it had cut its economic growth projections for 2026, as it began work on making a fiscal budget for next year.

The government predicted non-oil GDP, a key indicator of economic activity, will increase by 1.8% in 2026 against a forecast of 2.1% made in October, while growth for 2027 was raised to 1.9% from 1.8% seen previously.

Factors Influencing the Economic Forecast

Impact of Global Events on Norwegian Economy

The war in the Middle East increases the uncertainty in the international economy and could negatively affect Norway even if the price of oil and gas, the country's main exports, are rising, Finance Minister Jens Stoltenberg said.

"The impact on the Norwegian economy depends on how long and extensive the war is, but reduced global growth will affect Norwegian exports," Stoltenberg told a press conference.

Oil, Gas Prices, and the Sovereign Wealth Fund

"Higher oil and gas prices will provide increased income for Norway, while a potential downturn in the international financial markets will reduce the value of the sovereign wealth fund," he said.

Next Steps in Fiscal Planning

The minority government will present its 2027 spending plan in October.

(Reporting by Terje Solsvik, editing by Stine Jacobsen)