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Swedish household debt relative to income is falling for the first time since the mid-1990s – contributing to resilience in the long term, but raising questions about household spending and housing market trends in the near term.
The trend in Denmark is opposite to that of many other countries where large public deficits have taken hold. The solid finances help to ensure stable, low interest rates in Denmark.
In the next couple of years, activity in the Norwegian economy will be less affected by petroleum price changes than previously. But large energy shocks will impact price growth and thus Norges Bank’s interest rate decisions.
Nordic sustainable bond market hits all-time high in 2023
2023 was another banner year for the Nordic sustainable bond market, with over USD 60 billion in sustainable issuance for the year and record volumes in three quarters.
Sustainable finance outlook for 2024: It’s all about transition
"Transition finance" has gone from being a bullet point in a list of key themes to being the overarching theme in sustainable finance, says Nordea Sustainable Finance Advisory's Jacob Michaelsen. He explains why and shares the main topics on the agenda in 2024.
Nordea Chief Economist: Increased chances of a soft landing
The prospects for the global economy are still relatively good despite significant monetary policy tightening. Inflation has fallen sharply, and central banks will likely start cutting rates this year. This increases the chances of a soft landing, but uncertainty is high.
Slightly lower interest rates, continued high wage growth and low unemployment will gradually improve households’ purchasing power. We therefore foresee better times ahead for both the Norwegian economy and the housing market.
Sweden will see weak economic growth in the near term. Inflation will likely normalise and interest rates go down this year, which will provide support and lower the risks of a deep recession. However, the interest rate level will stay higher than before the pandemic.
Central banks will be reversing their monetary policies and start cutting rates in the coming months. The weak economic outlook and resultant declining price pressure trend are the biggest reasons for the turnaround.
High interest rates have sent the Finnish economy into a recession. The outlook for the first half of the year is unfavourable for private consumption, construction and exports alike.
Finland is in desperate need of investments in education, research and development in order to boost productivity growth, which has stalled for the past 15 years, to being on par with peer countries.
After several difficult years, the Nordic cleantech sector looks set for a comeback. Some of the past headwinds are receding and may even turn into tailwinds, according to a new report from Nordea’s ESG Research team.