Norway dips into $1.3tn reserves to dedicate $50bn to economic stimulus

Norway dips into $1.3tn reserves to dedicate $50bn to economic stimulus

Norway is relying on its $1.3 trillion sovereign wealth fund more than ever, as the country ratchets up spending without turning to bond markets to provide economic relief from the pandemic.

The government of Prime Minister Erna Solberg, facing an election in September, is raising this year’s so-called structural non-oil fiscal deficit by more than 9 per cent to 403 billion krone, or almost $50bn, it said on Tuesday. Government withdrawals, as a share of the world’s biggest wealth fund, will reach 3.7 per cent, compared with the central bank’s estimate of 3.3 per cent.