Norway cuts growth outlook as oil sector woes deepen

Oslo

NORWAY will spend more than expected of its saved-up oil wealth this year as its contracting offshore energy sector cuts into growth, eroding consumer confidence and boosting unemployment, the government said on Tuesday.

With oil prices tumbling, energy companies, which generate a fifth of Norway's income, will cut investment spending by 13.1 per cent this year, more than forecast earlier, and tax revenue will fall sharply, reducing the government's overall surplus, according to revised budget documents seen by Reuters.