The global situation is very uncertain due to the war in Ukraine, Chinese supply chains healing after the latest Covid outbreak and a recession likely around the corner in the US that could become deep. This also affects the Nordic economies, which are past the peak:
“Since our last Nordic Outlook, inflation has risen dramatically in the Nordics from already high levels. The inflation is partly caused by energy and commodity prices, partly by second-round effects as companies pass on the costs to consumers. Such effects could be seen as temporary, but it is also clear that global demand is running ahead of global supply, and it is necessary to contain it through higher interest rates,” says chief economist at Danske Bank, Las Olsen in the newly published Nordic Outlook report.