Norway’s revised budget adds to pressure for tightening
Analysts think higher public spending could reinforce Norges Bank’s tightening cycle
The Norwegian government increased public spending in a revision of its 2019 budget unveiled on May 14, which analysts say could lead to more rate hikes than previously expected.
Petroleum revenues spending will now be Nkr238.1 billion ($27.1 billion), up from the Nkr231.2 billion included in the budgetary plan published in October 2018. This will contribute to a fiscal expansion equivalent to 0.5% of mainland GDP, which excludes the oil and shipping industries.
“The upward revision is
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