Norway

Stable private and public growth

Throughout 2027, Norway's economy is expected to continue expanding at a moderate pace, as in 2026, supported by a resilient labour market, rising real wages, and still-solid household consumption. Although consumer confidence has softened amid heightened global uncertainty and persistently elevated inflation, households continue to benefit from strong employment conditions, rising wages and improving purchasing power. Government support measures, including ongoing energy-related schemes, should further help cushion the impact of external shocks on domestic demand.

Nevertheless, downside risks remain as the economy is experiencing some stagflationary trends. Inflation has proven more persistent than expected, rising above 3% at one point in 2026, while wage growth remains elevated due to tight labour market conditions. These factors are likely to constrain the pace of monetary easing, keeping financing costs relatively high for households and businesses. As a result, investment activity and more interest rate-sensitive sectors may continue to face headwinds. Furthermore, the uncertain external environment, including geopolitical tensions and slower growth among key trading partners, could weigh on Norwegian exports and business sentiment.

Corporate insolvencies have declined significantly during the first months of 2026, falling by around 15% year-on-year. However, this improvement is unlikely to persist throughout the forecast period. As cost pressures continue to build and demand moderates, insolvency levels has gradually begun to rise again in 2026. This trend is expected to continue in 2027. Higher labour costs, elevated financing expenses, and ongoing pressure on margins are likely to affect vulnerable businesses in particular. Sectors such as hospitality, transport, and business services have already shown signs of deterioration, while export-oriented and energy-intensive industries face growing risks from weaker external demand and increased operating costs. Despite these challenges, the overall level of insolvencies is expected to remain broadly consistent with historical norms.

Balances supported by hydrocarbon revenues

Norway’s external position is expected to remain exceptionally strong in 2027, underpinned by substantial hydrocarbon exports and sizeable returns on foreign investments. While the current account surplus is likely to narrow slightly as energy prices moderate and import demand remain stable, it will continue to be characterised by a large goods surplus driven by oil and gas exports. The services balance is expected to remain in deficit, reflecting Norway’s reliance on imported transport, travel and business services. However, this will be more than offset by a strong income balance, supported by returns from Norway’s extensive stock of foreign assets, notably the Government Pension Fund Global, the world's largest sovereign wealth fund.

Norway’s fiscal position is also expected to remain among the strongest globally. Although government expenditure is set to increase further, supported by defence spending, welfare commitments and targeted measures to shield households and businesses from higher costs, public finances will continue to benefit from substantial petroleum-related revenues and investment income from the sovereign wealth fund. As a result, the government is projected to maintain a sizeable fiscal surplus, while public debt remains low and stable by international standards. Nevertheless, the underlying mainland economy will continue to depend on transfers from petroleum-generated revenues, highlighting the ongoing importance of the oil and gas sector to Norway’s overall fiscal strength.

Balancing energy security with the green transition

The September 2025 general election saw Prime Minister Jonas Gahr Støre's Labour Party retain power following a marked recovery in public support during the preceding months. The return of former Prime Minister and former NATO Secretary General Jens Stoltenberg as Minister of Finance helped strengthen the government's economic credibility. Labour continues to govern as a minority administration, relying on support from a range of centre-left parties, including the Socialist Left Party, Centre Party, Red Party and Green Party. The government's agenda focuses on easing cost-of-living pressures, strengthening public services, maintaining elevated defence spending and addressing rising inequality. Reflecting these priorities, the 2026 budget introduced measures such as higher personal tax allowances, lower childcare costs, increased welfare benefits, and additional funding for municipalities, healthcare, energy support schemes and defence. A large tax reform is expected in 2027, and the next parliamentary election is scheduled for September 2029.

Looking ahead, the government faces the challenge of balancing Norway's long-term climate objectives with the country's continued dependence on the oil and gas sector. A transition commission will examine pathways to reduce reliance on hydrocarbons over the longer term and support the shift towards a lower-carbon economy. However, heightened geopolitical tensions, concerns over European energy security, and disruptions to global energy markets have reinforced the strategic importance of Norwegian oil and gas supplies. As a result, political support for maintaining – and in some cases expanding – hydrocarbon production remains significant, including renewed interest in Arctic developments. Investment in the sector has also strengthened during 2026, reflecting both favourable market conditions and Europe's continued demand for reliable energy supplies. These competing pressures are likely to remain a defining feature of Norwegian policymaking in the coming years, shaping both energy policy and Norway's broader economic relationship with Europe.

Payment

Bank transfers are by far the most widely used means of payment. All leading Norwegian banks use the BIC/SWIFT electronic network, which offers a cheap, flexible and quick international funds transfer service.

Centralising accounts, based on a centralised local cashing system and simplified management of fund transfers, also constitute a relatively common practice.

Electronic payments, involving the execution of payment orders via the website of the client’s bank, is widely used.

Bills of exchange and cheques are neither widely used nor recommended, as they must meet a number of formal requirements in order to be valid. In addition, creditors frequently refuse to accept cheques as a means of payment. As a rule, both instruments serve mainly to substantiate the existence of a debt.

Conversely, promissory notes (gjeldsbrev) are much more common in commercial transactions, and offer superior guarantees when associated with an unequivocal acknowledgement of the sum due that will, in case of subsequent default, allow the beneficiary to obtain a writ of execution from a competent court.

Debt Collection

Amicable phase

The collection process commences with the debtor being sent a demand for the payment of the principal amount, plus any contractually agreed interest penalties, within 14 days.

Where an agreement contains no specific penalty clause, interest starts to accrue 30 days after the creditor serves a demand for payment and, since 2004, is calculated on the basis of the base rate determined by the Central Bank of Norway (Norges Bank) in effect as of either January 1 or July 1 of the relevant year, raised by eight percentage points.

In the absence of payment or an agreement, creditors may go before the Conciliation Board (Forliksrådet), a quasi-administrative body. To benefit from this procedure, creditors must submit documents authenticating their claim, which should be denominated in Norwegian kroner.

The Conciliation Board then allows the debtor a short period to respond to the claim lodged before hearing the parties, either in person or through their official representatives (stevnevitne). At this stage of proceedings, lawyers are not systematically required. The agreement reached will be enforceable in the same manner as a judgement.

Legal proceedings

If a settlement is not forthcoming, the case is referred to the court of first instance for examination. However, for claims found to be valid, the Conciliation Board has the power to hand down a decision, which has the force of a court judgement.

A case which is referred to the higher court will commence with a summons to appear before the municipal or District Court. The summons will be served on the debtor with an order to give the court notice of intention to defend if he so wishes.

Where a defendant fails to respond to the summons in the prescribed time (about three weeks) or fails to appear at the hearing, the Board passes a ruling in default, which also has the force of a court judgement. The length of proceedings varies from one court to another.

More complex or disputed claims are heard by the court of first instance (tingrett). The plenary proceedings of this court are based on oral evidence and written submissions. The court examines the arguments and hears the parties’ witnesses before delivering a judgment.

Norway does not have a system of commercial courts, but the court of first instance is competent to hear disposals of capital assets, estate successions, as well as insolvency proceedings.

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Enforcement of a Legal Decision

A domestic judgment is enforceable for ten years if it has become final. If the debtor does not comply with the judgment, the creditor can request compulsory enforcement of the judgment from the enforcement authorities, which will then seize the debtor’s assets and funds.

Even though Norway is not part of the EU, particular and advantageous enforcement mechanisms will be applied for awards issued by EU countries, such as EU payment orders or the European Enforcement Order, under the “Brussels Regime”. For decisions rendered by non-EU members, they will be enforced on a reciprocity basis, provided that the issuing country is party to a bilateral or multilateral agreement with Norway.

Insolvency Proceedings

OUT-OF COURT PROCEEDINGS

Private non-judicially administered reorganizations are common in Norway; even though they are not regulated by law. Debtors and creditors are free to make any kind of arrangements, but in practice the Debt Reorganization and Bankruptcy Act is often applied. A third party (a lawyer or an accountant) can handle the process if the parties wish it so.

RESTRUCTURING THE DEBT

This procedure can only be initiated by a wiling debtor. His financial situation is assessed with a court-appointed supervisory committee and a composition proposal is prepared. If the court agrees, a composition committee as well as a court appointed trustee will manage the debtors’ operations and formulate a composition agreement. A debt settlement proceeding may result in a completed debt settlement, composition or the commencement of a bankruptcy proceedings.

BANKRUPTCY PROCEEDINGS

Proceedings can be opened by court decision either from the debtor or creditor. The latter must guarantee for expenses related to the proceedings. The court will appoint a trustee and assess the need for a creditor committee prior to issuing a bankruptcy order and given the creditors time to file their claim (three to six weeks). All of the debtor’s assets are confiscated, the debt is assessed and a list of approved claims is established.

If a settlement is not forthcoming, the case is referred to the court of first instance for examination. However, for claims found to be valid, the Conciliation Board has the power to hand down a decision, which has the force of a court judgement. A case which is referred to the higher court will commence with a summons to appear before the municipal or District Court. The summons will be served on the debtor with an order to give the court notice of intention to defend if he so wishes.

Where a defendant fails to respond to the summons in the prescribed time (about three weeks) or fails to appear at the hearing, the Board passes a ruling in default, which also has the force of a court judgement. The length of proceedings varies from one court to another.

More complex or disputed claims are heard by the court of first instance (tingrett). The plenary proceedings of this court are based on oral evidence and written submissions. The court examines the arguments and hears the parties’ witnesses before delivering a judgment.

Norway does not have a system of commercial courts, but the court of first instance is competent to hear disposals of capital assets, estate successions, as well as insolvency proceedings.

Last updated: July 2025