War in the Middle East slows the global economy – but Sweden gains momentum as uncertainty eases
The conflict in the Middle East is delaying the recovery in the global economy and increasing the risk of higher inflation. However, conditions are in place for an economic turnaround if uncertainty subsides and energy prices fall, according to Handelsbanken’s latest economic forecast. In Sweden, household purchasing power is then expected to strengthen more than usual, while house prices are forecast to rise.
“The war poses considerable risks, but in our main scenario the economic impact is contained and the recovery can resume”, says Christina Nyman, Chief Economist at Handelsbanken.