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Subject

Norway's economy.

Significance

Even as the global price for oil recovers slowly, Norwegian Prime Minister Erna Solberg's government hopes to encourage Norway to transition to a post-petroleum economy. The main contours of the 2017 budget suggest that the Norwegian economy has turned two significant corners: the prognosis for economic recovery is promising, and the Norwegian economy will slowly transition to a broader base.

Impacts

Spending rules for the GPFG could be tightened next spring.

The expansive budget may help Solberg's Conservative Party win back votes in the run-up to the 2017 general election.

The Christian Democrats could emerge as kingmakers from the 2017 election and possibly facilitate a centre-left coalition.

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