When the Fiscal policy council on Tuesday, leaving its annual report on the government’s approach to the management of the kingdom’s finances, noted that the boom is about to slow down. The council concludes that there is no immediate need for the government to act in order to face the economic downturn but that there must be a heightened readiness the next time.
– the Risk that developments will be weaker than we thought to have increased in the recent past, says Fiscal council chairman Harry Flam.
for the Riksbank, with the help of the interest rate support the economic activity is very limited, in that the interest rate is so low.
– Therefore, we call for the government should be prepared to take fiscal policy measures if necessary, ” says Harry Flam.
According to the Council, the government can do virtually that live up to the surplus target of 0.33 per cent of GDP.
– We have determined that the fiscal policy for 2019 is in line with the surplus target, ” says Harry Flam.
in the public finances are good, even if it is difficult to say at the present time what will be required when the population is ageing and the needs of the public healthcare system is growing.
– But it looks like that the public finances are quite sustainable, ” says Harry Flam.