Expenditure of Norway exceed 50% of GDP 1st time in 20 yearsStaff Writer | December 8, 2016
The general government’s total expenditure in the last four quarters is estimated at around NOK 1 550 billion, which amounts to 50.1 per cent of GDP in the same period.
Europe NOK 1 550 billion,
This is the first time in 20 years that general government expenditures exceed half of GDP.
The increase in general government spending’s share of GDP is explained by a slight decline in GDP in the last few years, as well as by an increase in public expenditure, measured in current prices.
Increases in expenditures relating to investments in particular, including road and rail infrastructure, have contributed to this growth.
Comparing the expenditures against GDP Mainland Norway, in which petroleum and natural gas extraction is not included, shows a more moderate increase.
This comparison shows that total expenditure makes up 57.7 per cent in the third quarter of 2016, which is 1.8 percentage points higher than two years ago. ■