Sweden’s "tiger economy" close to being tamed as growth bounces to zero
Tuesday, 14 February 2012
As the heavy cloud over the European economy gets thicker and darker, SEB's economists predict that even Swedish economic growth will bounce to near zero growth this year.
Some international lines of light can still see coming from the growing stronger economic signals from the U.S. and China. At the same time, central banks around the world are now under pressure to print new money at an accelerating pace in order to gain momentum in the international economy.
“The problems in Europe remain, but thankfully there are central banks, which now provide a historical relief. They create time, but it remains to be seen whether the political systems can solve problems in that time,” says SEB's Chief Economist, Robert Bergqvist.
SEB's economists expect a continued weak GDP growth in Sweden in the shadows of the uncertain situation in Europe. It stays at lead expect a 0.5 percent growth this year and tat there should be the expectation of increased unemployment to continues to rise.
“We are in a recession and we expect that we should reach the bottom perhaps by the summer and that it then gets better but at a slow pace,” says Bergqvist.
SEB expects the the Swedish central bank, the Riksbank should to cut the repo rate by about 1.0 per cent.
By Scancomark.se Team
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