Torbjorn Isaksson, Chief Analyst at Nordea Bank, stated in a report that the sluggish growth of the Swedish economy is certainly a reason for the Riksbank’s cautious approach. However, due to the weakness of the Swedish Krona and persistently high inflation rates, the Riksbank is expected to raise rates in September.
While economic growth in the second quarter was lackluster, it wasn’t as dire as initially estimated.
Revised GDP data for the second quarter indicates a contraction of 0.8% on a quarterly basis and 1.0% on an annual basis, whereas the preliminary estimates were -1.5% and -2.4% respectively.
Nordea Bank stated that the GDP for the first half of 2023 is in line with the Riksbank’s forecast, although the central bank might slightly adjust its GDP projection for 2023.
