Norway's Labour Party government said on Tuesday it had cut its economic growth projections for this year while raising it for 2026, as it began work on making a fiscal budget for next year.

The government predicted non-oil GDP, a key indicator of economic activity, will increase by 2.0% in 2025 against a forecast of 2.3% made in October, while next year's growth was raised to 2.2% from 2.1% seen previously.

"The government will carry out a responsible economic policy that prepares the ground for a further decline in inflation, increased purchasing power for households and stronger competitiveness for companies," Finance Minister Jens Stoltenberg said in a statement.

The minority government will present its 2026 spending plan in October.

(Reporting by Terje Solsvik, editing by Gwladys Fouche)