Sweden: Everything is in the air – Nordea

Everything is currently up in the air. The virus will most likely have a major impact on growth numbers also for Sweden, although it is very difficult to quantify the effects in numbers in the opinion of analysts at Nordea. EUR/SEK is trading at 10.9194.

Key quotes

“Figures will be negatively affected by the coronavirus in March, but GDP and other key variables should not look too bad for the full quarter of Q1.”

“GDP growth for Q2 looks very weak. Supply chain problems may hamper production and possibly also fixed investment, and exports will suffer from the set-back in world trade.”

“As for the Riksbank, one should be prepared that measures can be presented at any time now. To boost liquidity and provide cheap lending to companies are probably the first measures that the Riksbank will take. Rate cuts are possible too, but in such a case longer out.”