IMF sees Norway's growth rising to 1.5% this year

By Ovunc Kutlu

ISTANBUL (AA) - The International Monetary Fund (IMF) said Wednesday that it expects Norway's real GDP growth to rise to 1.5% this year from 0.5% last year.

The growth would be supported by a stronger offshore sector, but mainland activity would remain subdued and would rise by 0.8% amid still tight financial conditions, it said in a statement after the IMF’s executive board concluded the 2024 Article IV consultation with Norway.

"Amidst still high uncertainty, risks to the growth and inflation outlook are balanced," it added.

Inflation is projected to reach 3.3% by the end of this year and return to the 2% target by mid-2026.

"While retreating from its 2022 multiyear peak, headline inflation remains high and above the 2 percent target, with persistent services inflation keeping core inflation elevated," said the statement.

"Although easing since early 2024, financial conditions remain tight, reflecting a restrictive monetary policy stance following Norges Bank’s cumulative 450 bps increase in its policy rate," it added.