2018.03.0807:01:00UTC+00Norway's Upturn To Be Driven By Petroleum Investment, Global Growth

The economic upturn in Norway will be driven by increase in investment in the petroleum industry and higher global growth, Statistics Norway said in a report on Thursday.

Although investment in the petroleum industry continued to decrease throughout 2017, the decline appears to be at an end, the statistical office said.

Operators plan to increase their investment in the petroleum industry by NOK 125 billion over the next few years, and a substantial portion will be invested this year. This will boost the Norwegian economy going forward.

Fiscal policy as a whole is expected to be roughly neutral. The statistical office said the exchange rate will be less expansionary in the years ahead. The krone will continue to appreciate moderately in the coming years.

Interest rates are forecast to rise by around 1.25 percentage points over the next four years.

For 2018 as a whole, core consumer prices are set to increase 1.7 percent, while the growth in the CPI is estimated to be 2.0 percent.

The unemployment rate is forecast to fall to 3.9 percent this year, then to 3.7 percent in 2019. It will then remain at this level for the next two years, the report said.