Norway's minority Labour Party government said on Wednesday it plans to raise its spending level in 2027 from the country's $2.3 trillion sovereign wealth fund to help cover public expenses. The government proposed withdrawing 608.4 billion Norwegian crowns ($63.61 billion) from the fund in 2027, up from a revised 583.4 billion in 2026, and must now negotiate with four centrist and left-wing parties to pass the budget. Gross domestic product (GDP) outside the oil industry is now expected to grow by 1.1% this year, against 1.7% growth seen in May. Growth is seen at 1.7% in 2027, an increase from 1.6% predicted previously. "The budget proposal is estimated to have a neutral effect on the activity in the economy next year," the government said in a statement. It saw core inflation in 2026 at 3.1%, down from 3.2% seen in May, easing to a rate of 2.8% in 2027 against 2.6% seen previously. The structural non-oil deficit for 2027, a key measure of how much money the government will spend from the wealth fund, was expected to be 2.7% of the fund's projected value at the end of 2026, in line with the current year.
