• Sweden edition
Nordea predicts mixed prospects for Sweden

Nordea predicts mixed prospects for Sweden

Published: 04 Sep 2012 10:14 GMT+02:00
Updated: 04 Sep 2012 10:14 GMT+02:00

The bank predicts that the Riksbank will decrease interest rates by 0.5 percentage points this year.

“With low inflation, a weaker labour market, low policy rates internationally and a risk of further SEK appreciation, the Riksbank should cut rates this year,” Nordea analyst Torbjörn Isaksson wrote in the report.

Nordea predicts a growth of 1.2 percent in 2012 and 1.8 percent the year after. Unemployment will rise above 8 percent during winter, according to the report.

According to the report, Swedish industry has been weighted down by weak demand for Swedish exports from the rest of the world, while the krona has been strong.

But Nordea predicts that the situation will improve next year when the Eurozone economy is believed to improve. A better Eurozone outlook will lead to increased demand and a weaker krona.

“The SEK has become a safe-haven currency in 2012. The reasons are the modest exposure of the Swedish economy to troubled areas, solid public finances and a highly competitive business sector that generates surprisingly strong growth and increased interest rate differentials,” Isaksson wrote in the report.

Overall, Nordea predicts mixed prospects for the second half of 2012, forecasting a subdued growth short term but a pick-up in activity in the long term.

“A benign situation for households, a slightly more expansionary economic policy and a global economy that gradually recovers are the factors that will underpin higher GDP growth in coming years," Isaksson wrote.

Due to global weakness, growth will only accelerate slowly and unemployment will not decline until the latter part of the forecast period, according to Nordea’s analysts, who despite this predict stable finances for Swedish households.

Rebecca Martin

Follow Rebecca on Twitter here.

The Local (news@thelocal.se)

Don't miss...X
Left Right

Your comments about this article

12:17 September 4, 2012 by Abe L
If it's the households keeping the wheels turning, isn't lower tax pressure and more disposable income a more appealing solution rather then just decreasing interest with a marginal amount?
17:36 September 4, 2012 by Swedishmyth
Solution to what? Lower taxes would mean increased autonomy for individuals, a notion that is anathema to Swedish brand authoritarianism.
10:29 September 5, 2012 by smilingjack
the eurozone will pick up next year. your funny.

these type of comments are from the same people who never saw the gfc coming.

didnt have a clue then and dont now.

look at australia ( also in the middle of a property boom ) but at least you can rent your apartment there. where the mining industry has hit a brick wall and the spiral down is gaining speed rapidly.

the USA debt clock has officially ticked over to $16,000,000,000,000 now.

yep things sure are going well.

the illusion of wealth created by debt.
Today's headlines
Race to be scrapped from Swedish legislation
Integration Minister Erik Ullenhag meets children in Husby, Stockholm. Photo: Jonas Ekströmer/TT

Race to be scrapped from Swedish legislation

The Swedish government announced that it plans to remove all mentions of race from Swedish legislation, saying that race is a social construct which should not be encouraged in law. READ  

US aircraft 'violates' Swedish airspace

US aircraft 'violates' Swedish airspace

A mystery airplane that passed over Swedish airspace recently has been revealed as an American aircraft, sources revealed on Thursday. READ  

Elite schools stripped of 'special' privileges

Elite schools stripped of 'special' privileges

Sweden's three elite boarding schools can no longer charge tuition fees, the government announced on Thursday, in a string of changes following a two-year review. READ  

Bildt lays out four steps to Gaza peace
Photos: TT

Bildt lays out four steps to Gaza peace

Swedish Foreign Minister Carl Bildt stated that there are four steps to achieving peace in Gaza, and that it begins with removing the blockade - which has "played into Hamas' hands". READ  

Malmström snags EU commissioner post again

Malmström snags EU commissioner post again

Cecilia Malmström has been nominated to be the European Commissioner for another five years, Sweden's prime minister announced on Thursday. READ  

Stockholm Pride 2014
In Pictures: Stockholm's Historic Pride Party
Conchita Wurst belts out a ballad. Photo: Rebecca Jacobs

In Pictures: Stockholm's Historic Pride Party

With Stockholm's Pride Week in full swing, The Local's Rebecca Jacobs heads on down to the traditional Historic Party to take in the colours, Conchita, and the community. READ  

Two to hospital after Stockholm fire

Two to hospital after Stockholm fire

Two people were taken to hospital in the early hours of Thursday morning after a fire began in their central Stockholm apartment. READ  

Salmonella prompts Coop hamburger recall
Photo: Jim Cole/TT

Salmonella prompts Coop hamburger recall

Swedish supermarket chain Coop has recalled its in-store brand of fresh hamburger meat after a routine check revealed traces of salmonella in the meat. READ  

What's On in Sweden
Photo: Roger Vikström/TT

What's On in Sweden

It's Pride Week in Stockholm. Find out more about the celebrations (including the biggest Pride Parade in Scandinavia) as well as plenty of other activities in Sweden's three biggest cities. READ  

Sweden resumes aid to 'anti-gay Uganda'
Hillevi Engström and protesters against Uganda's anti-gay laws. Photos: Maja Suslin/Ben Curtis/TT

Sweden resumes aid to 'anti-gay Uganda'

Sweden has resumed sending development aid funds to Uganda, after suspending payouts back in March due to "anti-gay legislation". READ  

Top ten cafes in Stockholm
People-watching - Stockholm Pride
Photo: Henrik Trygg/Imagebank Sweden
Sweden worst in EU at getting foreigners jobs
Stockholm Pride kicks off
The top six ways the US and Sweden differ
Blog updates

31 July

Calling a speedo a speedo (Blogweiser) »

"There are a lot of speedos on Europe’s beaches. Some European males are evidently more comfortable sporting small, stretchy suits on public beaches than I would be. I accept it may be nice to have swimwear that’s not long and cumbersome. A speedo is maybe also good for tanning. But strolling around town in a..." READ »


27 July

Approaching Stockholm (Around Sweden in a kayak) »

"I woke up in the comfort of my own little cabin on Eva and Rolf’s boat, it was 7:30am and I was feeling a bit groggy after a couple of beers with all the lovely locals the night before. The previous day had really taken its toll on my body and I was very stiff and..." READ »

Swedish youth suicides hit 25-year high
Politician reported for selling 'negro ball'
Police turn blind eye to Swedish 'slave trade'
Stockholm Pride: Allsång på Skansen with Conchita Wurst
Sponsored Article
Introducing... ID cards and permits in Stockholm
People-watching, June 26th - 28th. Get inside Stockholm's hottest nightclubs
Top ten Swedish taboos
Seven-year-old Swede cycles to Berlin
'Gaza conflict needs help, not empty rhetoric'
Swedes voted 'most beautiful' in the Nordics
Business & Money
Sweden demands EU clarity on Bitcoin tax
Swedish organic sales enjoy 'amazing' growth
Photo: Johan Nilsson/TT
What's On in Sweden
People-watching July 23
Swedish cops elect not to shoot 'angry elks'
Business & Money
New alcohol retail rules threaten micro-breweries
People-watching Båstad
Business & Money
Sweden falls to third in global innovation index
Swedish ornithologists keep webcam watch
Sponsored Article
Introducing... Your finances in Stockholm
Sponsored Article
Introducing... Housing in Stockholm
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

jobs available
Swedish Down Town Consulting & Productions
Swedish Down Town Consulting & Productions is an innovative business company which provides valuable assistance with the Swedish Authorities, Swedish language practice and general communications. Call 073-100 47 81 or visit:
If you want to drink, that’s your business.
If you want to stop, we can help.

Learn more about English-language Alcoholics Anonymous in Sweden. No dues. No fees. Confidentiality assured.
PSD Media
PSD Media is marketing company that offers innovative solutions for online retailers. We provide modern solutions that help increase traffic and raise conversion. Visit our site at: