The world economy continues to show great resilience, and a soft landing seems increasingly likely. But strong labour markets pose a significant challenge for monetary policy as the natural interest rate is likely higher than previously assumed. In addition, the new geopolitical reality continues to pose a major risk to the growth and inflation outlook. The Nordic economies are showing some divergence. Norway and Denmark are on solid footing, while Sweden is stabilising and expected to recover further when interest rates begin to fall. Economic growth has lost steam in Finland, which remains in a recession. The ... (full story)