Denmark, as a small open economy, is typically sensitive to international developments. While the trade war poses challenges for Danish economic activity, the country is well prepared to weather the current global uncertainties. A substantial savings surplus, robust public finances and a flexible labour market strengthen Denmark's resilience.

Finland's budding economic growth faces potential setbacks from trade tariffs. While inflation and interest rates boost purchasing power, increased uncertainty may delay private consumption and investment. The housing market shows increased activity, but prices remain stagnant. Oversupply in rentals continues to deter new construction.

Norway's economic growth is accelerating, fuelled by rising consumer spending and housing construction. A weak NOK benefits exports, while global trade tensions are expected to minimally impact Norway's economy. Low unemployment and high wage growth will keep inflation above target. Norges Bank is unlikely to cut rates anytime soon.

Global trade tensions have affected Swedish households and businesses, but the impact on growth is expected to be limited. Favourable conditions support Sweden's ongoing gradual economic recovery. While inflation may decrease next year, a stronger economic environment should reduce Riksbank's need to ease monetary policy.

Read Economic Outlook here.

Real GDP growth forecast, % year-on-year

For further information: 

Helge J. Pedersen, Group Chief Economist, Mob: +45 22697912
E-mail: helge.pedersen@nordea.com

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