OSLO, Nov. 18 (Xinhua) -- The International Monetary Fund (IMF) has emphasized the importance of reforms and targeted measures for the regions and industries directly affected by the economic situation in Norway, the government said on Friday.
"I am happy that the IMF supports the government's politics. Norwegian economy is in a transition and the IMF points out the importance of reforms," Norway's Minister of Finance Siv Jensen was quoted as saying in a statement.
"At the same time they also support targeted measures for the regions and industries that are particularly affected by the fall in oil prices," Jensen said. "I am also pleased that the IMF supports the need for bank regulations of host countries in order to ensure financial stability and equal conditions of competition between Norwegian banks and branches of foreign banks."
"This is an important consideration for me in the further cooperation between the Nordic authorities," she added.
The IMF conducted a review of Norwegian economy every year and the next report is coming in summer 2017. As part of the preparations, the IMF has had meetings with the Norwegian authorities.
In a Concluding Statement describes the preliminary findings of its staff at the end of an official visit to Norway, the IMF said the country's economy is slowly recovering from the shock of low oil prices.
After remaining largely flat last year, Norway's mainland gross domestic product (GDP) expanded at a slow pace in the first three quarters this year, aided by supportive monetary and fiscal policies, according to the IMF's Concluding Statement.
"We project mainland growth to remain at about 1 percent this year, but to accelerate to 1.75 percent next year, supported by a pick-up in investment and export growth and improving consumer and business sentiment," it said.
However, the outlook hinges on a smooth transition away from oil and is subject to downside risks, the IMF statement said, adding that weaker-than-expected growth in key advanced and emerging economies could derail the non-oil export recovery and the transition. Enditem