It is also important to be aware that the bulk of Norway’s national wealth consists not of oil, but of the country’s labour force. Should our oil wealth lead to our working a little less, or being a little less productive, the decline in Norway’s remaining wealth would rapidly become as great as our entire petroleum wealth. On 29 March 2001, the Stoltenberg Government issued new guidelines for monetary policy and presented a guideline for fiscal policy. The guideline for fiscal policy implies that the central government budget deficit shall be equivalent over time to the expected real return on the Government Petroleum Fund. The guideline thereby provides a long-term anchor for fiscal policy. The Petroleum Fund thus serves as a buffer against fluctuations in petroleum revenues and the Norwegian economy. The alternative, to allow the government budget to fluctuate in pace with petroleum revenues, would have resulted in abrupt, unpredictable shifts in economic policy from year to year. The result would have been greater uncertainty. The guideline provides a stable framework that contributes to curbing uncertainty. The phasing in of petroleum revenues will contribute to stimulating activity in Norway. The fiscal guideline implies that the non-oil deficit will increase in the years ahead, thereby providing a substantial fiscal stimulus each year. The phasing in of petroleum revenues will have implications for Norway’s industry structure. Increased spending of petroleum revenues on goods and services that are dependent on domestic resources requires an increase in employment in the sheltered sector.
Gent Sejko: Statement at the joint press conference with the IMF Mission Chief for Albania and the Albanian Minister of Finance, 20 November 2018 Statement by Mr Gent Sejko, Governor of the Bank of Albania, at the joint press conference with the IMF Mission Chief for Albania and the Albanian Minister of Finance, Tirana, 20 November 2018. * * * Dear media representatives, In the last two weeks we have been engaged in discussions with the IMF Mission, which visited Albania in the framework of periodic Article IV consultations. Such discussions focus on the current performance of the economy and financial markets in Albania, their outlook, as well as the adequate economic policies and necessary structural reforms that should be implemented and monitored with a view to guaranteeing sustainable development for the country. I must say, with pleasure, that we share similar views on development trends, challenges that lie ahead, and the respective measures for tackling them. Let me now present in brief the opinion of the Bank of Albania on these issues. The positive trend of Albania’s economic development continued throughout the current year. From the perspective of aggregate demand, economic growth was supported mainly by the expansion of consumption, investments and Albanian exports. From the perspective of production sectors, economic growth reflected mainly the expansion of the industry and services sectors, driven to a large extent also by the rise in electricity generation.