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30 May 2014
Riksbank focused on Swedish GDP – Danske Bank
FXStreet (Edinburgh) - Today’s release of the GDP figures in the Swedish economy would be closely followed by the Riksbank.
Key Quotes
“In the shade of ECB positioning and upcoming critical inflation figures one could argue that today’s Swedish GDP figures for the first quarter are of secondary importance”.
“However, should our forecast of -0.4% q/q/2.0% y/y prove to be correct it could, on the margin, put further pressure on the Riksbank to take action since it is on the low side of is +0.2%/2.5% projection, as it could be argued that it should have some implications for the inflation forecast”.
“As in Q4 13, the demand side is again driven by domestic demand whereas net exports continue to be a drag”.
“On the production side, we expect the strong productivity growth in Q4 to be reversed given that hours worked appears to have increased by more than 2.0% y/y”.
Key Quotes
“In the shade of ECB positioning and upcoming critical inflation figures one could argue that today’s Swedish GDP figures for the first quarter are of secondary importance”.
“However, should our forecast of -0.4% q/q/2.0% y/y prove to be correct it could, on the margin, put further pressure on the Riksbank to take action since it is on the low side of is +0.2%/2.5% projection, as it could be argued that it should have some implications for the inflation forecast”.
“As in Q4 13, the demand side is again driven by domestic demand whereas net exports continue to be a drag”.
“On the production side, we expect the strong productivity growth in Q4 to be reversed given that hours worked appears to have increased by more than 2.0% y/y”.