Handelsbanken: Strong recovery, but by no means overheating
An easing of restrictions helped the recovery in Sweden gain new momentum over the summer, resulting in increased consumption. Housing prices are stable and the export industry is enjoying full order books, paving the way for a strong recovery.
“We expect GDP growth at the beginning of next year to have returned to the trajectory witnessed prior to the outbreak of the pandemic,” says Christina Nyman, Chief Economist at Handelsbanken.
However, the Swedish economy is far from overheated. Unemployment remains high and cost pressure is subdued.
“Consequently, we expect the Riksbank to