Norway to spend record $28 billion oil money to boost growth

HELSINKI – Norway says it plans to spend 225 billion kroner ($28 billion) of its oil fund — the largest in the world — to further stimulate the economy next year in the Scandinavian country that has shown signs of a gradual economic recovery.

The Finance Ministry says in its budget proposals that the record amount is equivalent to 0.4 per cent of the country’s GDP. It will be 20 billion kroner more than this year, amounting to 3 per cent of the value of the sovereign wealth fund.

The ministry said Thursday the market value of the fund, known as the Government Pension Fund Global, is expected to peak at 7,671 billion kroner at the end of 2017 — up from an estimated 7,420 billion kroner at the end of this year.