New macro forecast: Divergence at the global level and in Sweden
The Swedish economy continues to perform well. Growth is high and employment is rising. But there is no shortage of challenges. In Sweden, there is uncertainty regarding the outcome of the forthcoming parliamentary election, and the Riksbank is hesitating as to whether to hike the repo rate for the first time since 2011.The Swedish election will probably produce a complicated parliamentary situation, but we believe that this will eventually lead to the formation of a minority government involving either the Social Democrats or the Moderates. And although we may see an increase in volatility