Sweden: Growth recession coming? – Danske Bank
In view of analysts at Danske Bank, a growth recession is coming for Swedish economy, with the situation mirroring the ‘euro crisis’ in 2012.
Key Quotes
“The business sector is clutching at straws – we see employment becoming gradually lower in 2020.”
“Over time, actual inflation has been significantly below the 2% target and, in our view, the December rate hike will not be supportive for higher inflation in 2020.”
“The Riksbank introduces a zero interest rate policy but the term premium remains negative. We expect the SEK to weaken in 2020.”
“The government is foregoing the possibility of investing in public infrastructure, despite being paid to borrow.”
Author
Sandeep Kanihama
FXStreet Contributor
Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.
