Nordea predicts mixed prospects for Sweden
Published: 4 Sep 12 10:14 CET | Print version
Online: http://www.thelocal.se/42994/20120904/
The Swedish economy is going to be improving slowly over the next few years, and it will be households keeping the wheels turning, according to a new outlook report from Swedish bank Nordea.
- Riksbank unveils new board members (22 May 13)
- Nordea tracked clients in secret 'black book' (13 May 13)
- Borg calls for action over strong krona (8 May 13)
“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.
What do you think? Leave your comment below.
Riksbank unveils new board members
Sweden's central bank has appointed two new board members plucked from banking and academia to replace two outgoing members, one of whom was an outspoken critic of the Riksbank's commitment to the government's inflation goal. READ () »
Sweden has 'lower tax burden' than Senegal
While Sweden has a reputation for having one of the most painful tax bills in the world, a new report ranks Sweden 20th when comparing the tax burden on salaries when social security payments and salary brackets are taken into account. READ () »
Ericsson probed over suspected bribes
Swedish telecom equipment maker Ericsson is suspected of having bribed ministers in Romania in connection with being awarded a contract for the country's emergency number and is now under investigation in the United States. READ () »
Warning over 'long-term' Swedish export slump
Sweden's largest business confederation has gone out guns blazing, criticizing politicians for not facing up to the challenges of "a lost year for Swedish exports" in 2012. READ () »
'Lean hospital a sign of Swedish welfare reform'
A Stockholm hospital saved from closure by private health care providers has been hailed by the Economist as one of modern's Sweden public-private success stories. READ () »
H&M mulls production in South America and Africa
Swedish clothing giant H&M is looking into the possibility of sourcing its production to South America, Central America, and even Africa, chief executive Karl-Johan Persson said on Monday. READ () »
Nord Stream plans new gas pipelines
Gas pipeline firm Nord Stream will hold an information meeting on the Baltic island of Gotland on Monday to introduce a proposal to extend its controversial gas pipeline project. READ () »
'Sweden next in line for housing market crash'
Sweden tops a list of countries that risk suffering a housing market crash, Germany's Commerzbank has warned, citing the slackening off of Swedish property prices as a harbinger of a potential downswing. READ () »
Solna voted best place to live in Sweden
Solna, a suburb just north of Stockholm, is the best place to live in Sweden, according to a new ranking published on Friday by Swedish news magazine Fokus. READ () »
Ikea founder rated fifth richest in the world
Ingrad Kamprad, the founder of Swedish furniture giant Ikea, finished fifth on the Bloomberg Billionaires Index published on Friday, with an estimated fortune of $55.6 billion. READ () »
- 16/05 India in no rush to open first Ikea store »
- 16/05 H&M CEO to Bangladesh: raise minimum wages »
- 15/05 Sweden plummets in income equality ranking »
- 15/05 Pensioners to recruit ageing Swedish rockers »
- 15/05 Swedish shop hits back: our Converse are real »
- 15/05 Young Swedes forced to live with mum and dad »
- 14/05 Converse in bid to ban 'fake' shoes in Sweden »
- 13/05 Nordea tracked clients in secret 'black book' »
- 10/05 ABB executive to quit after five-year tenure »
- 10/05 Borg defends critique of strong Swedish krona »
| 22/05 | Accounting ManagerMichael Page | Göteborg |
| 22/05 | Accounting ManagerMichael Page | Göteborg, VTG |
| 22/05 | Architectural Engineer #8409Aker Advantage | Stockholm |
| 22/05 | Controller Tele2 Group ProductTele2 | Kista |
| 22/05 | Head of Product Control - If IndustrialIF skadeförsäkring | Stockholm, Nordic |
| 22/05 | Internship - ResearcherEricsson | Stockholm |
| 22/05 | Manager project management officeAker Advantage | Stavanger |
| 22/05 | Purchasing ControllerHuman Capital | Stockholm |
| 22/05 | Risk & Compliance ManagerHuman Capital | Stockholm |
| 21/05 | .Net Software ArchitectsVolvo Information Technology AB | Göteborg, VTG |
- 22/05 Spain and Germany fight youth employment »
- 21/05 Car boss asks Merkel to rethink CO2 pledge »
- 21/05 SAP to hire hundreds of autistic IT experts »
- 18/05 Economists warn against German euro exit »
- 17/05 Germany cool to France's EU economy plan »
- 17/05 Au pairs rules relax for non-German families »
- 16/05 Germany refuses to slam French economic policy »
- 16/05 Capri-Sun drink wins false advertising award »
- 15/05 Anaemic economy feels winter chill »
- 15/05 ThyssenKrupp bins 3,000 admin jobs »
- 16:48 Lamination or Plastic surgery for Certificate
- 16:04 Husby Riots and violence against the police...
- 15:40 Has anyone tried his hands on the Google Glass
- 15:36 Unlocking mobile phones
- 14:58 Favorite mobile phone
- 14:57 Salary expectations for managing a busy bar?
- 14:08 Your favorite place
- 13:47 90% of male population gay?
- 12:29 Living costs in London
- 12:21 Can you recommend an excellent immigration lawyer?
Create an account with Banc De Binary, the world’s most reputable binary options firm, and start cashing in today! You can start by practicing with our free $50,000 demo account.
www.bbinary.com
Expat counsellor & talk therapist offers counselling for stress, relationship issues, sexuality, culture adjustment & life coaching. Private & confidential. Stockholm or Skype. Contact me today! 08-559 22 636 or
CLICK HERE
Casa Birgitta in Algarve, Portugal. Reduced price in best location. Private estate on white sand beach. All amenities included. Book here today! edward_george1@hotmail.com
Find products and services that are specifically focused on English speakers living in Sweden!
FULL DETAILS
Individuals & Couples - Stockholm Beth Rogerson PhD - Clinical, Marriage & Family Therapist
Click or call 08-5580 1266 now
Your comments about this article:
The comments below have not been moderated in advance and are not produced by The Local unless clearly stated. Readers are responsible for the content of their own comments. Comments that breach our terms and conditions will be removed.
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.