The Norwegian government has introduced significant measures to support jobs, help businesses and people, and strengthen health services. Still, more may be needed in the coming weeks. The measures must be targeted, effective and reversible.
The fiscal measures so far add up to over NOK 139 billion, corresponding to around 4.6 percent of Mainland GDP. In addition, the budget is estimated to be weakened by more than NOK 60 billion by reduced tax revenues and higher expenses due to the economic downturn (automatic stabilizers). Overall, the oil-adjusted budget balance is estimated to be weakened by NOK 201 billion in 2020.
In addition, the guarantee schemes for SMEs and the Government Bond Fund contribute with at least NOK 100 billion in loans to businesses. Reduced key interest rates also contribute to household- and corporate liquidity through lower debt servicing costs.