Nordic markets are drawing investors' attention
The third-largest economy in the euro zone, Italy, is expected to grow by only 0.2 percent according to forecasts by the EU Commission - and thus significantly less than the 1.0 percent expected by Rome. Accordingly, investors are becoming more nervous. In phases of increasing debt, the focus shifts to Scandinavia with its solid strength and cosmopolitan markets, as well as alternative investment opportunities.
Nordic markets are drawing investors' attention
A growth by only 0.2 percent is significantly less than the 1.0 percent expected by Rome. Accordingly, investors are becoming more nervous. In phases of increasing debt, the focus shifts to Scandinavia with its solid strength and cosmopolitan markets, as well as alternative investment opportunities.
Italy is experiencing a crisis
According to the EU Commission, the third-largest economy in the euro zone has "excessive macroeconomic imbalances" in view of its national debt of 130 percent of gross domestic product. Based on forecasts by the authorities, the economy in Italy is expected to grow by only 0.2 percent - significantly less than the 1.0 percent expected by Rome. Brussels therefore also sees the budget plan for 2019 that was negotiated with the Commission in December as being at risk: "The country is suffering from constantly low productivity and the economy will hardly grow at all this year. This is reflected not only in the purchasing managers' index, but also in the services sector, which is below 50 points. These are signs of a continuing contraction in economic output.
Rating downgrades are an imminent threat. Investors are viewing the country with increasing nervousness. The higher risk premiums demanded for Italian government bonds reflect doubts about the country's solidity. Reasons for the widening of the yield gap also lie in the fact that safe havens are in greater demand due to increasing investor concerns. The Nordic economies are thus increasingly coming into focus. In addition to their fundamental strength and very low indebtedness (Norway has a national debt of 36.6 percent of GDP, Sweden 38.03 percent, Germany 61 percent and Italy 133 percent), Norway, Sweden & Co. score points with their high level of education, advanced digitalization and stable political situation. In addition, these countries have a well-functioning social system. Scandinavia is gaining in importance not least thanks to its high degree of diversification. Experts are already talking about a "miniature world economy" with regard to the small but very open economies.