Swedish Economy to Avert Slump Despite Housing Woes, Danske Says
- Bank sees Swedish 2023 GDP rising 0.5% versus -1% seen before
- Outlook clashes with EU estimate of worst slump in the bloc
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Sweden’s economy looks likely to avoid a contraction this year, economists at Danske Bank A/S said, as it has shown surprising resilience in the face of rising prices and surging borrowing costs.
The Copenhagen-based bank now expects Sweden’s gross domestic product to grow by 0.5% this year, having previously estimated a 1% contraction, according to its new Nordic Outlook. The upgrade — contrasting with more gloomy views from the European Commission and the OECD — comes after recent data showed that unemployment is declining and that the situation in the housing market has stabilized.