Sweden Gets Hit By the Ugly Stick

Sweden gets knocked down a peg -

Sweden's economy unexpectedly slid back into recession in the fourth quarter, figures showed, sending the crown lower and raising questions about how soon interest rates will rise. Gross domestic product contracted 0.6 per cent in the fourth quarter from the third, against forecasts for a 0.3 per cent increase.

The third-quarter GDP figure was revised to show a 0.1 per cent quarterly decline from an original 0.2 per cent gain, the statistics office said. This meant the economy fell back into recession, based on a widely held definition of the term.

The Real Effect
Economists were divided over the implications of the numbers. No kidding? Economists were divided? Or perhaps there were 2 groups of economists with different opinions? Better hope the Icelanders don't default on their bonds.