Norway: record drain on the sovereign wealth in the face of the pandemic

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Hit hard by the health crisis and the economic crisis, Norway is determined to draw from its sovereign fund beyond the authorized ceiling to revive its economy.

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Created in 1990 to boost Norway's oil revenues, the Government Pension Fund-Global is the largest sovereign wealth fund in the world. Its value exceeds $ 1 trillion, and its objective is clear: to provide future generations of the country with the oil rent of today.

But, faced with the slowdown of its economy and weighed down by the fall in oil prices, the kingdom has less revenue and more spending. To meet these exceptional needs, he will therefore have to dip into his woolen socks beyond the 3% authorized.

The government plans to levy the equivalent of $ 41 billion, or 4.2% of the total value of the fund. This money will make up for the fall in state tax revenues, help businesses or finance short-time working. Currently, 400,000 Norwegians benefit from this social shock absorber.

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