Global growth divergence increases with the US and UK pulling ahead. A global economy at different speeds raises the demand on policy making, Swedbank said in its latest macro outlook.

The Swedish economy will recover in 2014 before gearing down in 2015. Economic policy will tighten, household demand squeezed by raised interest rates, and export demand is lacklustre.

The growth in the Baltic economies will be quite robust and broad-based. The main challenges lie in the labour markets, which are heating up gradually.