The European Crisis Catches Up to Nordic Europe

The Nordic members of the European Union — Sweden, Denmark and Finland — are succumbing to the effects of the European crisis. In all three countries, declining exports and contracting domestic consumption are weakening economic activity, but each country has its own problems and challenges. The Swedish statistics office recently announced that Sweden's economy is slowing down. But because of its relatively big consumer base and solid fiscal position, Sweden is likely to have modest growth in the next two years. For its part, Denmark will struggle with the consequences of its real estate bubble. And the economic outlook looks particularly fragile for Finland, the only Nordic member of the eurozone.