Danske Bank A/S

12/05/2023 | Press release | Distributed by Public on 12/05/2023 01:25

Nordic Outlook: Coming in for a soft landing

The year is coming to an end, and after a year with high inflation and high interest rates, one of the key questions is how the economy will develop over the next year.
In a brand-new Nordic Outlook, Danske Bank's macroeconomists give their take on the outlooks for the global as well as Nordic economies.

If we start with the global perspective, it looks increasingly like a soft landing for the major economies, where inflation is declining faster than expected and the
economies are more stagnating than declining. However, it is far from a done deal.

"The global economy seems more and more set on a soft landing, but we see quite large differences between different regions in the world. We think the US will be able to escape recession while it looks much bleaker in the euro area. At the same time, the risk picture continues to be complicated and there is quite large risk of the economy seeing a harder and more harsh landing than our baseline forecast," says Heidi Schauman, Global Head of Research at Danske Bank.

In the video here, you can see, Heidi Schauman explain more about the elevated risk levels and when she expects the central banks to make rate cuts.