Norway

Norway is in the midst of a healthy recovery from the 2015–16 oil-driven downturn. After growing by 1.9 percent in 2017, mainland economic activity is expected to accelerate further and to grow by about 2½ percent this year and next. But population aging and labor productivity will weigh on potential growth going forward. Norway also faces important challenges to sustaining its prosperity into the future: securing competitiveness in non-oil sectors as the contribution from oil wanes, and dealing with high and rising non-oil fiscal deficits, which will only worsen as aging pressures start to bite. More immediately, high household debt is an ongoing source of concern.