We've raised our 2025 GDP growth forecast for mainland Norway by 0.4ppts to 1.5%. Our modelling of the impacts of the government's expansionary 2025 budget suggests a stronger-than-expected fiscal impulse totalling 0.7ppts next year. This will make fiscal policy a key growth driver next year as monetary policy continues to constrain private sector investment and household spending.
Norway: Strong fiscal impulse will offset restrictive monetary policy