Norway slows oil spending to cool currency
Oil rich nation wants to slow economy to help exporters
The Associated Press
Posted: May 15, 2012 9:05 AM ET
Last Updated: May 15, 2012 10:10 AM ET
Norway's Troll A platform about 70 kilometers off the coast in the North Sea is shown. The oil-rich nation is slowing its oil exports to help exporters and cool the country's currency. (Marit Hommedal/Associated Press)
Norway's government says it will spend less of its oil wealth in an effort to avoid excessive economic growth, which has been boosting the national currency, hurting exporters.
The Finance Ministry says its use of oil income will be cut by 6 billion kroner ($1 billion) from the 122 billion kroner ($21 billion) approved last year for the 2012 budget.
The ministry said in a statement Tuesday that spending by businesses and households was "high" and it was sticking to its 2.75 per cent forecast for economic growth this year. Growth next year is expected to reach 3 per cent.
Norway enjoys huge wealth from its oil sector, but cannot spend it all domestically for fear of overheating the economy. Unemployment is expected to stay at 3.25 per cent this year, far below the 10.2 per cent registered in the 27-member European Union in March.
Share Tools
Top News Headlines
- G8 leaders agree to 7-point plan on Syria as summit wraps
- Prime Minister Stephen Harper and the other G8 leaders reach a seven-point plan aimed at stopping the conflict in Syria, wrapping up a two-day summit in Northern Ireland following talks on trade, tax evasion, poverty and terrorism. more »
- Are e-cigarettes safe to puff?
- As electronic or e-cigarettes grow in popularity, some health advocates want them to be regulated. more »
- In Bangladesh's garment trade, empowerment comes at $20 a week
- The pay is laughable by Western standards, and the shantytowns of Dhaka offer a difficult life. But the surge of mostly young women into the country's increasingly important clothing industry is having a profound change on this largely Islamic society, Margaret Evans writes. more »
- Tory MP bows to Elections Canada in fight over expenses
- Conservative MP Shelly Glover has bowed to Elections Canada in a battle over her 2011 campaign expenses, days after filing a court challenge against the agency. more »
Must Watch
Latest Business Headlines
- Tim Hortons being circled by Wall Street hedge funds
- At least two groups of American hedge funds have bought large chunks of Tim Hortons shares recently, a sign the activist investors want to push the company to make major changes to its business, or possibly give up some control over the company. more »
- Chrysler agrees to recall 2.9 million Jeep SUVs in U.S., Canada
- Chrysler avoided a showdown with U.S. government safety regulators Tuesday, agreeing to recall 2.7 million older Jeep Grand Cherokee and Liberty SUVs in the U.S. and 180,000 in Canada that could be at risk of a fuel tank fire. more »
- Leaders downplay reports of stalled Canada-EU trade talks
- Both Prime Minister Stephen Harper and his British counterpart, David Cameron, downplayed signs of trouble in the Canada-EU trade negotiations Tuesday, even as the European Union's spokesman suggested Canada hasn't shown enough "pragmatism and flexibility" at the table. more »
- Business jets dominate Bombardier's $2B in sales at air show
- Business jets dominated the aircraft orders announced by Bombardier on Tuesday, the second day of the Paris Air Show, accounting for most of the nearly $2 billion US worth of business that the Montreal-based company has done at the show — if all options are exercised. more »
- Crowdfunding websites trying to cash in on crowded field
- Success stories make it seem like crowdfunding websites drop cash from the heavens on to any deserving idea. But regulators and big banks are now taking a closer look at the controversial new field, Dianne Buckner writes. more »
Lang & O'Leary Exchange
Markets
| Index | Last Trade | Change |
|---|---|---|
| TSX COMPOSITE | 12367.46 | 78.56 |
| DOW | 15318.23 | 138.38 |
| NASDAQ | 3482.18 | 30.05 |
| SP 500 | 1651.81 | 12.77 |
| TSX-VENTURE | 929.99 | -4.05 |
The data on this site is informational only and may be delayed; it is not intended as trading or investment advice and you should not rely on it as such.
- Canadians in Dominican wedding fight freed from jail
- TV chef Nigella Lawson's husband cautioned by police for assault
- Disabled woman's care before dying on bus still a mystery
- Huge ancient city at Angkor Wat revealed by lasers
- Montreal mayor resigns amid corruption charges
- 'Standing man' inspires new, silent protests in Turkey
- Student with bullied past, 'The Doorman,' graduates
- G8 leaders agree to 7-point plan on Syria as summit wraps
- Parents of son 'brutally beaten' playing hockey want charges
