Nordic outlook is bright, but downside risks are rising

The Nordic recovery is on track despite some surprises in the Q2 GDP components and rising downside risks. Real goods exports underperformed given the rebound in external demand, reflecting stress in supply chains and input shortages for the region’s trade-sensitive economies.

What you will learn:

• Nordic export order books are among the highest in Europe, so the external sector, which is reliant on industries most affected by the shortages and bottlenecks, should make up for the temporary weakness once they ease.
• The resilience of overall industrial production and fixed investment has provided important support.
• While growth in industry is likely to moderate and be subject to temporary setbacks, the long-term outlook remains solid as the backlog of orders is eliminated and inventories are replenished.