The IMF has called on Norway to cut back on spending its oil income, saying the economy needs no further stimulus and the government should focus on fostering private sector growth instead as it begins the long transition to life after oil. The budget has provided the economy with repeated stimulus even though it is running near capacity. The government needs to cut back, both to save the oil income and maintain a more neutral fiscal stance, the fund said. “The upward trend in government consumption and investment, together with the increasing labor demand from the oil and gas sector … has crowded out and increased labor cost pressure in other exposed industries,” the IMF said after ending its annual consultation with Norway. Norway has saved up its oil money in a fund now worth $870 billion, or $170,000 per man, woman and child, and will spend less than […]