Investments by Norway's oil industry will decline more than expected in 2017 and economic growth is now seen fractionally lower than forecast, the country's finance ministry said on Tuesday at the start of a three-day government budget meeting.
At the same time, a rise in the price of crude, Norway's top export, and cost cuts by the oil industry, have reduced the risk of a major economic setback, it added. Oil and gas firms are now expected to cut investments by 11.6 percent year-on-year, against an October forecast of a 10 percent decline.
The government now predicts an average oil price of 479 Norwegian crowns ($55.90) per barrel in 2017, up from an earlier forecast of 425 crowns and well above the 379 crowns per barrel earned in 2016.