• Norway's news in English
 

Soaring oil prices swell Norway's surplus

Published: 15 May 2012 16:26 GMT+02:00

"Economic activity in Norway has held up well in 2012, despite the global economic slowdown," Finance Minister Sigbjørn Johnsen said in a statement.

In its revised budget, Norway's left-leaning government therefore adjusted upwards its anticipated surplus for the year, including oil and gas revenues, by nearly 36 billion kroner ($6.1 billion) to a total of 381.3 billion kroner.

Not counting its oil and gas sector, the country's budget deficit for 2012 was now seen slipping to 112 billion kroner, from a previously anticipated 122.2 billion.

The finance ministry explained the adjustments by soaring oil prices, as well as higher-than-expected tax revenues and lower-than-expected expenditures.

To avoid an overheating of its economy, which in turn could push up the value of the krone to the detriment of Norwegian industries, the ministry prescribed drawing less than the approved amount from Norway's so-called oil fund.

The fund -- one of the biggest sovereign wealth funds in the world -- contains all state revenues from the country's oil and gas sector and was at the end of 2011 valued at 3,971 billion kroner.

Norway has set a 4-percent limit on the amount that can be tapped from the fund each year to balance its budget.

The finance ministry said on Tuesday that due to rising oil prices it in 2012 would need to draw just 116 billion kroner from the fund, which is 16 billion below the 4-percent path and 6 billion less than the approved amount last year.

Not counting the oil and gas sector, Norway's economy is now expected to grow 2.7 percent this year, down from the estimate in the autumn budget of 3.1 percent.

"Next year a further pick-up is expected to 3.0 percent," the finance ministry said, adding that Norway's unemployment was expected to remain low, at 3.25 percent this year.

Your comments about this article

Today's headlines

Ice climber falls to death in Norway

An ice climber of foreign nationality has died of his injuries after he fell between 30 and 40 metres while trying to scale a waterfall in southern Norway. Rescue workers desperately tried to reach the man, who got stuck on a ledge, but were unable to get to him in time. READ  

Muslims form 'ring of peace' at synagogue
Young Muslims link hands around the Oslo Synagogue on Saturday night Håkon Mosvold Larsen/NTB scanpix

Muslims form 'ring of peace' at synagogue

Norwegian Muslims organised a peace vigil in Oslo on Saturday in a show of solidarity with Jews a week after fatal shootings in Denmark targeted a synagogue and free speech seminar. READ  

 Glacier ice: The world’s new luxury ice cube?
An image of the Svartisen glacier taken from Svaice's website. Photo: Svaice

Glacier ice: The world’s new luxury ice cube?

Imagine you’re lounging in a Dubai sky bar and you get served a vodka martini filtered through thousand-year-old ice mined from a glacier in the far north of Norway. This is the idea behind Norwegian start-up Svaice. READ  

Dutch cons fear losing cushy cells to Norway
Norgerhaven Veenhuizen prison in The Netherlands. Photo: Dutch Ministry of Justice

Dutch cons fear losing cushy cells to Norway

Dutch prisoners have gone to court to block a ground-breaking plan to rent out spaces in their jail for criminals from Norway, where the prison service faces a serious capacity shortage. READ  

Norwegian's Filipina wife charged with murder
An autopsy room. Photo: Shutterstock.

Norwegian's Filipina wife charged with murder

The Filipina wife of a Norwegian man found dead in his bedroom last summer has been charged by police for pre-meditated murder after an autopsy report revealed signs of carbon monoxide poisoning. READ  

'Are you crazy? Why should I blow myself up?'
The woman's face on TV2 yesterday: Screen grab from TV2

'Are you crazy? Why should I blow myself up?'

The 19-year-old Oslo woman hunted by international police on suspicion of planning a suicide attack has vigorously denied any such plans, telling Norway’s TV2 that she had been planning to come back to Norway. READ  

Video
Northug takes gold in stunning comeback
Petter Northug in tears on the pedastal in Falun. Photo: Vegard Wivestad Grøtt/NTB Scanpix

Northug takes gold in stunning comeback

Norwegian skiing legend Petter Northug has pulled off one of the great comebacks in sporting history, taking gold in the cross-country sprint at the Nordic skiing world championships on Thursday. READ  

Norway prison to send imam to Muslim inmates
A winter scene at Ringerike Prison: Photo: Ringerike Prison

Norway prison to send imam to Muslim inmates

A Norwegian prison is to bring in a local imam to prevent Muslim inmates becoming radicalised in the same way as the young Dane who carried out brutal twin attacks in Copenhagen over the weekend. READ  

Norway hunts suspected suicide bomber
A class taking place at an ISIS bootcamp in Syria, such as the woman is supposed to have attended. Photo: YouTube screengrab/Karl-Ludwig Poggemann/Flickr

Norway hunts suspected suicide bomber

Norway’s intelligence services have put out an international alert warning about a female Norwegian Islamic militant suspected of planning a suicide attack in Europe. READ  

Bad-boy artist Melgaard's Munch pairing 'unworthy'
Photo: Cornelius Poppe / NTB scanpix

Bad-boy artist Melgaard's Munch pairing 'unworthy'

An exhibition showing an image of a painting by Norwegian artist Edvard Munch with a penis cut and pasted onto it has been condemned by one of the artist's descendants as “unworthy” and “undignified”. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
National
As it happened: Denmark rocked by terror attack
National
King Harald visits Antarctic namesake
Culture
Norwegians streak the streets of Berlin
Culture
Norway couple find love on word game app
International
What's keeping UK expats from voting?
Business & Money
FATCA: 'The age of financial privacy is over'
International
Norwegian chef wins world's top food prize
Sport
Real Madrid sign Norway prodigy Ødegaard
Politics
Solberg: The fight for freedom isn't won
National
Gaza doc named Norway's person of year
National
Norway extends Russian military freeze
National
Why has The Local got a new logo?
National
Kjell Inge Røkke tops Norway's Rich List
International
Surprise! Norway priciest for home comforts
National
Norway terror attacks to become TV drama
International
Malala: Youngest ever Nobel Peace Laureate
National
Norway celebrates 25 years of Sami politics
Business & Money
CurrencyFair: Why it pays when making overseas transfers
International
Norway best country for older people
National
Muslim centre wanted on site of Munch Museum
International
Norway to send military staff in fight against IS
National
Father warns Breivik 'more extreme than ever'
National
Four-year-old Norway girl sleepwalks 4km
Travel
Cruise line offers Northern Lights promise
National
10-tonne shark found dead off Norway coast
International
'If Snowden wins Nobel Prize, arrest him!': MP
Culture
VIDEO: Swim ace does 'Pool Rubik's Challenge'
National
Norwegian man in 7,000 litre 'Ice Truck Challenge'
Society
Norwegian brewery pulls 'fart-smelling' beer
Sport
Ødegaard: Norway's youngest player ever
National
Miracle cat survives 20 gunshots in Norway
National
Second death within hours at Chess Olympics
National
Norway and Sweden mark 200 years of peace
Culture
Interview: Helene Meldahl, selfie artist
Society
Now serving ... Norway's smallest bar
Travel
Floating Northern Lights hotel planned in Norway
National
Circus camel escapes again
National
Swiss bus driver charged with careless driving in fatal Norway crash
Society
Brit's charity tractor trek heads for Norway
National
Norway lifts Segway ban
Culture
GALLERY: Ten great songs about Norway
Society
Høie promises to reform sex change law
Education
Norway fjord invaded by monster jellyfish
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Sweden

More news from Sweden at thelocal.se

262
jobs available