Sweden productivity growth seen at 1.9% Y/Y (wda) in 2016

With the international outlook stabilising and improving prospects, the capital-intensive export industry is expected to continue on a stronger course. The domestic, labour-intensive sectors are also expected to grow, but relatively at a slower pace as compared to previous years. Swedish productivity growth has been weaker than expected, in line with international developments.

"Bearing in mind that post-crisis productivity has been about 1pp lower than pre-crisis, our forecasts for productivity growth of 1.9% y/y (wda) in 2016 and 1.5% y/y (wda) in 2017 come across as strong." - Danske Bank