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Global economic cycle looks to be entering 2017 in a rather upbeat mood. Indicators are pointing to higher growth in all major regions at the same time which is likely to support open economies such as the Nordics.
Recovery among major economies is likely to see employment rise, and in most cases unemployment decline. Recovery in business investment is likely which has been mostly absent since the crisis years. This should help raise productivity growth both in the Nordics and globally and lead to more demand for Nordic investment goods.
That said, underlying growth in the four Nordic countries is not the same, owing to very different demographic situations, among other things. Danske Bank expects synchronised recovery among the Nordic countries in 2017, but says Nordic growth rates would diverge a little again in 2018.
"In 2017, GDP growth ranges from 1.3% in Finland to 1.8% in Norway, according to our forecasts," said Danske Bank in a report.
