Norway’s newly re-elected Labour minority government said on Wednesday it plans to increase its spending in 2026 from the country’s $2 trillion sovereign wealth fund to help cover public expenses.
The government proposed withdrawing 579.4 billion crowns ($57.2 billion) from the fund in 2026, up from a revised 534.2 billion in 2025, and must now negotiate with four smaller centrist and left-wing parties to pass the budget.
Gross domestic product (GDP) outside the oil industry is now expected to grow 2.0% this year, up from 1.8% growth seen in May and 2.1% in 2026, an increase from 1.6% predicted previously, the finance ministry said.
“Activity is growing more rapidly than last year, unemployment remains low and projections indicate a gradual decline in consumer price inflation and continued real wage growth,” the government said in a statement.
It saw core inflation in 2025 at 2.9%, easing to a rate of 2.5% in 2026.
The structural non-oil deficit for 2026, a key measure of how much money the government will spend from the wealth fund, was expected to be 2.8% of the fund’s projected value at the end of 2025, up from 2.7% this year, the finance ministry said.
($1 = 10.1284 Norwegian crowns)
Reuters
