OECD Economic Surveys : Norway 2024 / OECD.

Format:

Book

Author/Creator:

Organisation for Economic Co-operation and Development, author, issuing body.

Language:

English

Subjects (All):

Norway--Economic conditions.

Norway.

Norway--Economic policy.

Physical Description:

1 online resource

Other Title:

OECD Economic Surveys

Place of Publication:

Paris : OECD Publishing, 2024.

Summary:

Norway's economy is slowing as inflation and higher interest rates weigh on consumption and investment. The labour market is tight and wage growth robust, while labour shortages and job mismatches are high and rising. Inflation is falling but still way above the target of 2%. The fiscal stance is expansionary. It should become contractionary to support monetary policy. While Norway is one of the OECD's most productive countries, productivity growth over the past decade has been weak. Making skills more relevant, notably by strengthening vocational education and training, could help raise productivity and ease tight labour markets. Higher and broader taxation of greenhouse gas emissions and investing in lower‑cost emission cuts would help achieve emission reductions more efficiently. Public spending as a share of GDP is the highest in the OECD, which brings important benefits in the form of high-quality public services. However, oil revenues are set to decline, and ageing costs to rise, foreshadowing strains on public finances in the future. Norway could benefit from applying a medium-term expenditure framework, introducing a spending rule, and establishing a full-fledged fiscal council. Reforming the very generous sickness and disability scheme could help reduce spending pressures and increase employment. Regional policy should become more cost-conscious. Infrastructure investment is very high, and imposing a minimum benefit-cost ratio on individual projects and strengthening ex-post evaluations could help improve its effectiveness.

Contents:

FOREWORD

Executive Summary

1 Key Policy Insights

Introduction

Macroeconomic developments

Monetary and macroprudential policy tightening has peaked

Fiscal policy should be more forward-looking

Productivity growth should be strengthened

Fostering strong and relevant skills

Towards a resilient and sustainable power sector

References

2 Raising the Effectiveness of Public Spending

The past and future of overall public spending

Improving the fiscal framework

Fiscal federalism and regional policy objectives affect many spending areas

Healthcare: better coordination of services is needed

Education: high spending, but only average results

Sickness and disability benefits are too generous

Agricultural subsidies should be pruned and greened

FIGURES

TABLES.

Notes:

Description based on publisher supplied metadata and other sources.

ISBN:

92-64-89378-4