Tuesday, 4 September 2012

Nordea: Finland and Denmark on the brink of a new recession

According to Nordea (the bank),
Denmark, Finland, Norway and Sweden have status as safe havens in financial markets. But while the Norwegian economy shines, darker clouds are gathering over Sweden while Finland and Denmark are on the brink of a new recession.
On Denmark,
The Danish economy is characterised by low growth and a largely unchanged level of activity since the autumn of 2010. Gradually Denmark is expected to return to the growth track driven by substantial pent-up demand among households that will gradually show through in rising consumption. Meanwhile, growth will also be underpinned by a delayed positive contribution from public sector consumption and investment.
And on  Finland,
Finland is also feeling the effects of the global economic slowdown and is probably heading into recession. Exports and investment activity are slowing in line with the trend in world trade, while weaker imports reflect problems in domestic demand. Consumer spending has lost most of its steam and will lose further momentum once the slowdown also hits the labour market. A new recovery driven by a stronger international economic environment will only emerge later in the forecast period.

No comments:

Post a comment