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Sweden can look forward to decent growth in the years ahead as a soft landing in the U.S. buoys the global economy, economists at Swedish bank SEB say in a note. The U.S. Federal Reserve is primed to cut interest rates from their current heights next month, with some economists suggesting policymakers might lower rates by half a percentage point, rather than the more cautious quarter point. That should add impetus in Sweden, where the Riksbank has already trimmed rates twice this, Swedbank says. Lower rates and taxes will boost growth in domestic output, which should rise by 2.6% in 2025 and by 2.9% the year after, according to the bank's updated projections. "A U.S. recession can be avoided after all. This will benefit the entire global economy," chief economist Jens Magnusson says.([email protected]; @joshualeokirby)
Positive signs in the French economy mask unease among the business community, says Patrick Martin, head of business lobby group Medef. The French economy grew a little better than expected in the second quarter, with services given a generous shot of dynamism this month by the Olympic Games in Paris. This is good to see, but company bosses are increasingly concerned, Martin tells TV channel BFM Business. He notes the months-long backslide in manufacturing and construction, as well as political deadlock and a lack of sympathy for business in the National Assembly. "There are very few legislators who originate in the business world," he says. "They don't understand the constraints we face, or our projects and our ambitions." ([email protected]; @joshualeokirby)
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