Nordic Economies Economic Outlook
The Nordics’ economy should gain traction in 2025. Private spending will lead the charge amid healthy wage growth, and interest rate cuts should add further impetus. Still, a more adverse external backdrop and tighter fiscal policy should present headwinds in most of the region. Investor sentiment, housing prices, EU demand and U.S. tariff policy are key to monitor.
Nordic Economies Inflation
In February, inflation rose in Denmark, Norway and Sweden but eased in Finland and Iceland. In 2025, inflation should fall but sit above target in Norway and Iceland. In Denmark, Finland and Sweden, it will rise toward target as private spending improves and the effect of past rate cuts permeates through the economy. Energy prices and U.S. trade policy are 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) | 56,805 | 67,665 | 67,880 | 64,439 | 65,961 |
| Economic Growth (Real GDP, ann. var. %) | -2.1 | 5.1 | 2.1 | 0.6 | 1.7 |
| Private Consumption (annual variation in %) | -3.5 | 5.4 | 3.2 | -0.7 | 0.6 |
| Investment (annual variation in %) | 0.3 | 5.2 | 1.3 | -3.4 | -1.3 |
| Industrial Production (ann. var. %) | -1.9 | 5.8 | 3.8 | 1.7 | 3.1 |
| 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 | 41.1 | 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 | 230 | 249 | 258 | 262 |
| Merchandise Imports (USD bn) | 170 | 215 | 241 | 220 | 217 |
| International Reserves (USD bn) | 72 | 79 | 81 | 79 | 81 |