Covered Bond Framework Q1 2021 slide image

Covered Bond Framework Q1 2021

Nordic economies - strong rebound in sight GDP development, % Unemployment rate, % 135 Index 2007Q1=100 130 125 120 135 11 GDP, level Index 2007Q1=100 % 130 10 9 125 8 120 7 Unemployment rate Finland 11 % 10 9 7 115 115 Norway Sweden 60 6 110- Denmark O 110 Sweden 5 5 105 105 Denmark 4 4 Finland 100 100 95 95 3 2 3 2 Norway 90 90 1 1 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 Source: Macrobond and Nordeal 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 Source: Macrobond and Nordea Comments GDP forecasts from Economic Outlook January 2021, % • Country (%, y/y) 2020 2021E 2022E After the dramatic setback in 2020 due to the coronavirus, there appears to be light at the end of the tunnel for 2021 Vaccines are expected to bring long-awaited relief and the prospect of a return to normal. Nordic households' relatively strong finances pave the way for a broad recovery, as pent-up demand unwinds when restrictions are lifted Denmark -2.7 2.5 3.5 Finland -2.9 3.0 2.0 The labour market has shown resilience, largely due to government subsidies such as short-term furloughs. The hard-hit services sector will rebound swiftly, and GDP is expected to reach pre-crisis levels in mid-to-late 2021 Norway -2.5 2.7 4.3 Sweden -2.8 4.0 3.0 17 Source: Nordea Markets and Macrobond Nordea
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