Economies were heading for a new phase both globally and in the Nordics even before the Russian invasion of Ukraine. With the war in Ukraine, this new phase has become more manifest, says chief economist at Danske Bank, Las Olsen, whose team has just published an assessment of the status quo and the economic outlooks across the Nordic countries – outlooks that are significantly clouded by the uncertainty arising from the war in Ukraine.
"The recovery from the Covid-19 crisis is over in the sense that unemployment is no longer elevated while demand is high and inflation is picking up. So, growth has to slow. The war has further complicated the situation, especially by triggering higher and very volatile energy prices, which reduces spending on some items whilst also resulting in added inflation and constrained output", says Las Olsen.