The Organisation for Economic Co-operation and Development – OECD – today presents its annual review of the Norwegian economy. The report gives a comprehensive analysis of the economic development and medium term outlook for Norway, as well as a thorough discussion of structural policy issues.

- The Norwegian authorities share many of the OECD's assessments of the Norwegian economy, says Minister of Finance Karl Eirik Schjøtt-Pedersen. - Among others we share the assessments made concerning the need for a modernisation of the public sector and the necessity of maintaining high labour market participation to secure the standard of living in the long term. I also take note that in the OECD's view, the possibility of covering rising public expenditures by increasing taxes are limited, as this may have adverse effects on economic growth.

- The OECD has given a thorough analysis of the challenges connected to an ageing population. The Government takes these challenges seriously, and will appoint a committee to discuss challenges in the pension system, and if necessary put forward a proposal for pension system reform. I also take note of the OECD's emphasis on the need to save the major part of petroleum revenues to meet the rising pension expenditures in coming years, says Mr. Schjøtt-Pedersen.

This year’s report contains a special review of the challenges related to an ageing population. It is stressed that although Norway starts from an enviable position, the ageing of the population will lead to a bigger run-up in spending than in most other OECD countries due to the design of the pension system. To meet the increased expenditures it is, in the OECD's opinion, important to continue saving the major part of oil revenues in the Government Petroleum Fund. The need to curtail sick leave and the inflow of new disability pensioners, and the necessity of modernising the public sector for an effective utilisation of the labour force is also stressed in the report. - A large and competent labour force is essential in meeting the challenges in connection with an ageing population, says Mr. Schjøtt-Pedersen.