SEB sees continued recovery but also greater downside risks in its latest Nordic Outlook, stating that the Riksbank will cut key rate again in uncharted new political landscape.

• Sweden’s red-green opposition hold solid lead

“The Swedish economy is expected to gradually recover but the recovery is still uncertain,” Finance Minister Anders Borg said.

• Sweden to cut GDP forecasts
• Swedes raid piggy banks to buy new homes

Swedish retail sales rose 0.5 percent in June.

• New deals lift SEB Q2 profits above forecasts

The krona rose against all of its 16 major peers after Sweden’s Labor Board said the unemployment rate in June climbed.

Riksbank: We are slowly moving in the right direction.

“It’s worrisome that we have such low inflation”.

“Denmark is making the long hard pull to leave the crisis behind”.

“Despite a cautious increase in the momentum of global economic growth, the battle by central banks against deflation risks is not yet won”, a Swedish bank says.

“I don’t think that the comparison with a stagnating Japan is all that accurate”, Anders Borg said in response to Krugman’s critic.

“The Ukraine conflict will worsen an already weak economic situation, which has largely been caused by structural problems, further accentuating the need for reforms”.

Beijing is on the verge of being “unfavorable for human living”.

Sweden was at the top of business adviser PwC’s latest Escape Index, which ranks countries on economic, political, social, technological and environmental factors.

• Sweden the world’s 20th freest economy
• Sweden no longer has world’s highest taxes