Nordic Economies Economic Outlook
Following several forecast cuts since January amid rising global trade barriers, growth in the Nordics economy is now seen ebbing from 2024 and remaining far below the global average. Still, domestic demand should cushion the slowdown on interest rate cuts, rising real wages and tax cuts across most of the region. Investor sentiment and U.S. tariff policy are risks.
Nordic Economies Inflation
In May, inflation rose in Denmark, Finland and Norway, was unchanged in Sweden, and eased in Iceland. In 2025, healthier private spending should fan inflation across the region, keeping it above target in Norway and Iceland; still, price pressures should ease from 2024 in the latter two on high interest rates. Rising geopolitical and trade tensions are downside risks.
This chart displays Economic Growth (Real GDP, ann. var. %) for Nordic Economies from 2010 to 2024.
| 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|
| GDP per Capita (USD) | 56,788 | 67,483 | 67,725 | 64,218 | 65,758 |
| Economic Growth (Real GDP, ann. var. %) | -2.1 | 4.9 | 2.0 | 0.6 | 1.8 |
| Private Consumption (annual variation in %) | -3.5 | 5.4 | 3.1 | -0.5 | 0.8 |
| Investment (annual variation in %) | 0.4 | 5.0 | 1.2 | -3.0 | -0.3 |
| Industrial Production (ann. var. %) | -1.9 | 5.8 | 3.8 | 1.7 | 2.9 |
| Unemployment (% of active population, aop) | 6.6 | 6.3 | 4.9 | 5.3 | 5.9 |
| Fiscal Balance (% of GDP) | -2.7 | 3.1 | 9.0 | 4.4 | 3.3 |
| Public Debt (% of GDP) | 49.4 | 45.1 | 41.2 | 43.6 | - |
| Inflation (CPI, ann. var. %, aop) | 0.7 | 2.5 | 7.2 | 5.9 | 2.3 |
| Policy Interest Rate (%, eop) | -0.23 | -0.08 | 2.34 | 4.04 | 3.22 |
| Merchandise Exports (USD bn) | 191 | 229 | 248 | 256 | 262 |
| Merchandise Imports (USD bn) | 170 | 216 | 241 | 219 | 218 |
| International Reserves (USD bn) | 145 | 161 | 177 | 188 | 190 |