Norway

Norway’s economy has shown resilience amid global uncertainty, supported by strong fiscal buffers, a credible policy framework, and a robust net external asset position. These fundamental strengths should help Norway steer through the challenging external backdrop of increasing geopolitical tensions and trade policy frictions. Ahead of the September national elections, the fiscal stance remains expansionary, driven by increased defense spending. Monetary policy remains restrictive to address above-target inflation. While structural reforms have gained new momentum, with a reinforced focus on labor participation and public sector efficiency.