Norway announces fiscal measures to stimulate economy

Special Report:Global Financial Crisis

STOCKHOLM, Jan. 26 (Chinese media) -- The Norwegian government

unveiled a stimulus package Monday to limit the economic downturn caused by the

global economic crisis.

The stimulus package amounts to 20 billion kroner

(2.88 billion U.S. dollars). It consists of 16.75 billion kroner (2.41 billion

dollars) in an increase in budget expenditures and 3.25 billion kroner (467

million dollars) in tax relief for the business sector, the Norwegian government

said in a statement posted on its website.

"This is the most ambitious fiscal stimulus proposed

in more than 30 years to boost growth and employment," Finance Minister Kristin

Halvorsen and said in the statement.

The measures are aimed at addressing the emerging

problems in the Norwegian labor market. It is vital to ensure that the measures

we implement are targeted, temporary and will contribute to sustainable growth,

Kristin Halvorsen added.

The government expected Norway's economy would shrink

0.5 percent this year, compared to a 1.74-percent growth in 2008. Unemployment

is expected to rise to 3.5 percent from last year's 2.5 percent.