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Nordic Economies Economic Forecast

Nordic Economies Economic Outlook

This year, aggregate GDP growth in the Nordics is seen close to 2025’s pace and just above the prior decade average of 1.7%. Both fixed investment and private spending growth are seen hitting multi-year highs, the former amid higher defense outlays, the latter thanks to relatively contained inflation. Weaker global trade is a downside risk.

Nordic Economies Inflation

In July, inflation fell in Denmark, Finland and Sweden, rose in Norway and held steady in Iceland. While panelists have hiked their 2026 forecasts since the start of the Iran war, inflation should still average at one of its lowest rates of the post-pandemic era this year and well below the world average. U.S.-Iran tensions and monetary policy decisions remain key to track.

This chart displays Economic Growth (Real GDP, ann. var. %) for Nordic Economies from 2010 to 2019.

2021 2022 2023 2024 2025
Merchandise Imports (USD bn) 401 440 410 405 436
Merchandise Exports (USD bn) 442 468 474 483 528
GDP per Capita (USD) 68,073 68,424 64,792 66,660 71,963
Industrial Production (ann. var. %) 5.8 2.9 1.1 3.4 4.0
Public Debt (% of GDP) 44.6 40.7 43.1 46.4 47.0
Fiscal Balance (% of GDP) 3.0 8.9 4.4 3.1 2.4
Economic Growth (Real GDP, ann. var. %) 4.8 2.0 0.3 2.0 1.8
Private Consumption (ann. var. %) 5.4 3.0 -1.3 1.1 1.8
Fixed Investment (ann. var. %) 5.8 1.3 -2.0 0.9 0.3
Policy Interest Rate (%, eop) -0.04 2.40 4.14 3.32 2.44
Inflation (CPI, ann. var. %, aop) 2.5 7.2 5.9 2.3 1.8
Unemployment (% of active population, aop) 6.3 4.9 5.3 5.9 6.4
International Reserves (USD bn) 163 153 159 163 185

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