Nordea: Positive economic surprises possible, despite zero growth this year
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Loading... - Jeanne Abadie
- 26 Jan 2023
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Nordea expects zero GDP growth in Finland for this year and one percent growth in 2024.
Despite a weak global economy, there could be good surprises in store for Europe this year, according to Nordea Group's chief economist, Helge Pedersen.
He said that mild weather this winter has lessened the energy crunch in Europe, adding that China's economy is expected to improve following the lifting of strict Covid restrictions.
"Although inflation seems to have peaked, it is still an open question how much further monetary policy tightening is needed to lower it substantially. The central banks are thus facing a delicate balancing act, with many years of ultra-accommodative monetary policy suddenly being turned upside down," Pedersen said in a statement introducing the bank's outlook.
Nordea has projected zero growth of GDP in Finland for this year and one percent growth in 2024.
The bank determined Finland's economic outlook to be "quite mixed," with "bleak" consumer and corporate confidence.
However it also said that inflation is expected to ease along with anticipated wage growth, "which will provide relief for household finances towards the end of the year."
Meanwhile, Nordea's outlook called for GDP across the Nordics to shrink by 0.5 percent this year and to grow by 0.9 percent in 2024.
Globally, it forecast GDP growth of 3.2 percent this year and expansion of 2.7 percent in 2024. Read More…
