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Nordic outlook: goodbye crisis, hello uncertainty

With corona restrictions lifted and economic indicators at or above pre-crisis levels, new risks are emerging for the Nordic economies, writes Danske Bank’s macroeconomic team in their latest Nordic Outlook report, highlighting the risk of rising inflation and stagnating growth also known as stagflation.




The COVID-19 crisis and subsequent lockdowns negatively impacted all Nordic countries with substantial levels of lost production. But losses were significantly smaller than elsewhere in Europe and with restrictions now lifted and GDP and employment numbers at or above pre-crisis levels, the Nordic countries can now look back on a crisis that has been very different from previous crises. 

“The decline was extremely steep, but so was the recovery, and we do not now have a long recovery period ahead of us – most of it has already happened”, says chief economist at Danske Bank, Las Olsen in the newly published Nordic Outlook report.