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Nordic Economies Economic Forecast

Nordic Economies Economic Outlook

Our panelists have downgraded their 2026 GDP growth forecasts as the Middle East conflict rages on. Still, regional growth is seen clocking a four-year high supported by solid domestic demand, relatively low interest rates and higher defense spending. A prolonged closure of the Strait of Hormuz and higher U.S. tariffs remain downside risks.

Nordic Economies Inflation

In April, inflation edged down in Finland, Iceland, Norway and Sweden, but rose in Denmark. Our panelists have continued to revise upward their 2026 inflation forecasts to account for the ongoing Iran-U.S. war and its effect on shipping plus energy costs. Still, consumer prices are seen averaging at one of their lowest levels in the post-pandemic era this year.

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

2021 2022 2023 2024 2025
GDP per Capita (USD) 68,073 68,424 64,827 66,352 71,659
Private Consumption (ann. var. %) 5.4 3.0 -1.4 1.0 1.9
Fixed Investment (ann. var. %) 5.8 1.3 -2.3 -0.6 0.3
Industrial Production (ann. var. %) 4.6 1.5 -0.5 1.3 3.0
Economic Growth (Real GDP, ann. var. %) 4.8 2.0 0.2 1.5 1.6
Policy Interest Rate (%, eop) -0.04 2.40 4.14 3.33 2.45
Public Debt (% of GDP) 44.6 40.7 43.1 46.6 47.2
Fiscal Balance (% of GDP) 3.0 8.9 4.4 3.2 2.4
Merchandise Exports (USD bn) 442 468 475 480 525
Merchandise Imports (USD bn) 401 440 410 405 437
Unemployment (% of active population, aop) 6.3 4.9 5.3 5.9 6.4
Inflation (CPI, ann. var. %, aop) 2.5 7.2 5.9 2.4 1.8
International Reserves (USD bn) 163 153 159 163 185

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