Follow the economy across the Nordic countries and economic changes worldwide.
Sanctions in relation to Russia
Nordea complies with applicable EU, US and UK sanctions. They currently include freezing of assets, restrictions on economic relations with certain regions in Ukraine, restrictions focusing on energy and finance sector, import and export restrictions and overflight bans.
Although industrial production has been running at full capacity this year, manufacturing output and goods exports volumes are still below the levels seen in 2008. This is due to the fact that production capacity has fallen and the share of value added to the economy by manufacturing has decreased permanently.
Economic growth was strong in the first half of the year but is showing signs of weakness towards the end of the year. High energy prices are sapping consumers’ purchasing power at the same time as the slowdown in global economic growth is hampering exports. Meanwhile, falling housing sales will slow down construction.
Sweden's economy is weakening from a strong position
Rate hikes and high inflation are putting a damper on the Swedish economy, and unemployment will rise. A stabilisation is expected during 2024, but the recovery will be slow as the economy gradually adjusts to higher interest rates.
Overheating in the US, the tight COVID stance and real estate sector slowdown in China, the energy market crisis in Europe and geopolitical risks are all denting growth prospects. At the same time, inflationary pressures are strong and will continue to be central banks’ main headache in the coming months.
How are Norwegian households affected by rising interest rates?
Strong price growth and higher interest rates will mean tighter finances for many Norwegian households. Below, we illustrate the consequences this will have on three families with the same income but different debt-to-income ratios. Lower savings, use of accumulated assets and more people in work will mitigate the impact on overall consumer spending.
The economic outlook is more uncertain than it has been for a long time. High price growth and rising interest rates will make these tough times for Norwegian households. The impact on consumer spending will be mitigated by lower savings and more people in paid work.
The Danish labour market has powered ahead in recent years. Job growth has been high and unemployment is approaching the lowest level since the early 1970s. But companies have had big recruitment problems and wage growth has been higher than abroad.
After a period of high growth, rising home prices and record-high employment, cooler winds are now blowing over the Danish economy. Households feel the impact of falling purchasing power and businesses are hurting from the slowdown in the global economy.
Nordea Group Chief Economist: Risk of recession in the Euro area is real
Inflation has reached the highest level since the early 1980s, and central banks seem determined to fight it through aggressive monetary policy. This is also the case in the Nordic countries where housing markets face a sharp slowdown.