Nordea Economic Outlook: Feeling the Squeeze
The energy crisis has hit the European economy hard, and the risk of a recession in the Euro area is real. Inflation has reached the highest level since the early 1980s, and central banks seem determined to fight it through aggressive monetary policy. This is also the case in the Nordic countries where housing markets face a sharp slowdown, says Helge Pedersen, Nordea Group Chief Economist. The Nordic economies have recovered strongly from the pandemic but are now being hit by the sharp increase in cost of living and the uncertain economic environment. The common denominator for the