Nordea Bank ABP has reported a positive outlook for household purchasing power in Sweden, indicating a recovery that could significantly impact the economy. According to Annika Winsth, Chief Economist at Nordea, GDP growth is projected to be 0.6% in 2024, increasing to 1.6% in 2025 and 2.6% in 2026. This growth is expected to be supported by anticipated wage increases of around 3.5% due to upcoming wage agreements, alongside rising house prices that are aligning with incomes. Furthermore, public investment is on the rise, driven by defense and infrastructure needs, which is likely to bolster domestic demand. The report also notes that interest rate cuts by the Riksbank are expected to further stimulate economic activity. In contrast, political uncertainty may pose challenges to the Swedish economy's stability. Meanwhile, US GDP growth is predicted at 2.5% for 2025, reflecting broader economic trends that could influence Sweden's economic landscape. [19b5260e] S&P Global has similarly highlighted the importance of household purchasing power in the Netherlands, forecasting that stronger domestic demand will play a crucial role in the Dutch economy's recovery starting in 2024. [e92374a8]