STOCKHOLM (Reuters) – Lifted pandemic curbs are boosting economic recovery for the Nordic economies as high consumer and corporate spending drive growth, a Reuters poll of economists suggested.
The Danish economy has largely reverted to pre-pandemic levels, with economic growth exceeding 2019 levels amid soaring employment rates, prompting economists to forecast a moderate boom in coming years.
“It is not demand, but rather supply, that can become a problem in the labour market,” Sydbank chief economist Soren Kristensen said in a note last week.
Danish growth was seen at 3.8% in 2021, up from 3.0% in a July forecast. Denmark’s GDP growth was expected to slow to 3.3% next year, below the 3.5% previously forecast.
Denmark’s booming housing market has been a cause for some concern, but the government has so far refrained from intervening, despite repeated calls from the central bank to do so.
Recent price statistics are indicating a slowdown in property price development.
Sweden and Norway are each set for expansion of 3.5% or more in 2021 and 2022, according to the Oct. 25-27 survey, as the gradual return to normal life is increasing in tandem with more people getting vaccinated.
Sweden’s gross domestic product was expected to grow 4.2% this year, up from the 3.6% economists forecast in July. In 2022 the economy was expected to expand 3.5%, unchanged from the July forecast.
Sweden bounced back quickly with the economy reaching pre-pandemic size earlier this year. The red-hot manufacturing sector continues to support the economy, although it has been hampered by supply-chain disruptions.
Norway’s GDP was seen expanding 3.7% this year and in 2022, above the previous forecast for 3.5% growth this year and next.
(For other stories from the Reuters global long-term economic outlook polls package)
(Reporting by Johan Ahlander in Stockholm and Nikolaj Skydsgaard in Copenhagen; polling by Swathi Nair; Editing by Steve Orlofsky)