Swedish economist: Sweden may benefit from the upcoming actions of the Federal Reserve

ChainCatcher news, economists at Sweden's Nordea Bank stated in a report that as the U.S. economy is expected to achieve a soft landing, boosting the global economy, Sweden is likely to see substantial growth in the coming years.

The Federal Reserve is expected to cut interest rates from the current high next month, with some analysts suggesting that policymakers may lower rates by 0.5 percentage points instead of the more cautious 0.25 percentage points.

Nordea Bank indicated that this should increase momentum in Sweden, as the Swedish central bank has already cut rates twice. Lower interest rates and taxes will promote growth in domestic output, with the bank's chief economist Jens Magnusson stating that according to the latest forecasts, domestic output is expected to grow by 2.6% in 2025, followed by a growth of 2.9% the following year. A recession in the U.S. is ultimately avoidable, which will benefit the entire global economy. (Jin Shi)