Nordic Outlook: Mixed situation as central banks show true colours

So far in 2024, the growth outlook has improved a bit. The United States has again reported surprisingly strong growth, but also worrisome inflation setbacks. The inflation downtrend is alive but unstable, persuading central banks to wait longer and cut key rates more slowly. In a deteriorating geopolitical situation with constant new military, political and economic conflicts, the world remains unpredictable. In Sweden, rapidly falling inflation is opening the way for a clear shift in both fiscal and monetary policy and a strong recovery in GDP in 2025. The Riksbank will cut its policy rate in May, with a total of four rate cuts in 2024 and three in 2025.