OECD Economic Survey of Norway

The Organisation for Economic Co-operation and Development (OECD) presented today its economic survey of Norway. The survey gives a comprehensive and insightful analysis of the Norwegian economy.

- The OECD’s assessment of the Norwegian economy serves to stimulate the debate on important economic policy issues. The Norwegian authorities are in broad agreement with the OECD regarding the main challenges for the Norwegian economy. These include the need for a proper management of our oil wealth, the need to complete the pension reform, and the need for further structural reforms to sustain high labour force participation and high productivity growth, says State Secretary Roger Schjerva.

In recent years, the Norwegian economy has generated wealth and jobs at almost unprecedented rates. The OECD finds that in addition to rising world energy prices and favourable supply shocks, this good performance also reflects fiscal restraint, successful monetary policy and the economy’s capacity to attract foreign labour.

The OECD argues in favour of undershooting the 4 per cent guideline in the medium term, when the oil price is high and the Pension Fund is growing rapidly. Reasons for this recommendation include providing support to monetary policy, and building up a greater cushion of pre-funding for the long-term fiscal challenges related to ageing. 

The OECD is concerned about disincentives to labour market participation, and argues that further efforts to reform welfare spending programs are required. The OECD also stresses the importance of completing the pension reform as planned.

The country survey also includes a special chapter on compulsory education.
The OECD states that traditionally, the Norwegian compulsory education system has focused strongly on the linked goals of equal opportunities to learn, and on a comprehensive and inclusive education. Still, OECD finds that compulsory education is not cost-efficient regarding the pupils’ achievement in reading, mathematics and science. In the White Paper on quality in compulsory education presented in June, the Government introduced several measures to improve results and increase cost-efficiency that are in line with the OECD’s recommendations on education.

The survey and policy brief can be downloaded here: http://www.oecd.org/eco/surveys/norway

OECD web pages on Norway: http://www.oecd.org/norway

 

Webcast from the press conference

Powerpoint: Patrick Lenain
Powerpoint: Paul O’Brien