Nordic Outlook: Continued global recovery despite new wave of European debt crisis

The global recovery will continue, helped by the underlying power of the emerging market economies, low interest rates in the Western world and optimistic, profitable companies. Cautious economic policy tightening in emerging market economies will lay the groundwork for a soft landing, while in the OECD countries the recovery has become sufficiently self-sustaining to withstand the challenges created by the disaster in Japan, unrest in the Middle East/North Africa and high prices for energy and other commodities. GDP growth in the OECD countries will reach 2.4 per cent this year and 3.1 per cent in 2012: a slight downward revision of our previous forecast for this year, but an upgrading of the growth prospects for 2012. Due to falling commodity prices and low cost pressure, inflation will fall next year despite rising resource utilisation and will reach normal levels in such countries as Germany, Sweden and Norway.

Read the whole Nordic Outlook below.