Northvolt is part of the green transition in the north.
– Norrland's economy is poised for a positive trajectory this year, explains Susanne Spector, head of macroeconomic analysis at Nordea. This positive outlook contrasts with the national trend, where high inflation and interest rates have impacted metropolitan areas heavily reliant on consumption and housing construction.
Nordea's regional analysis highlights Upper and Middle Norrland as the only areas expected to see positive Gross Regional Product (GRP) growth in 2024. This growth is further bolstered by its spread across the region, exceeding initial expectations focused primarily on Västerbotten. Factors like green investments and the defense industry are cited as key drivers of this expansion beyond Västerbotten and into Norbotten.
In contrast, the outlook for West Sweden, Mälardalen, and the Stockholm region paints a less optimistic picture. Stockholm, in particular, is predicted to experience continued economic weakness, attributed to lingering effects of the pandemic. This is evident in the region's slower recovery in labor demand compared to pre-pandemic levels.
Susanne Spector, chief analyst, Nordea. Press image.
Despite a national decline in inflation and anticipated lower interest rates, challenges persist in the housing sector. Slow population growth and high costs continue to hamper progress. However, the overall forecast remains cautiously optimistic, with both GRP and employment expected to rise in 2025.
– We anticipate a turnaround by 2025, with the national economy demonstrating solid growth, concludesSpector.
The economy is growing in northern Sweden.
Table: BRP and number of jobs, year-on-year change