Belgian Consumer Confidence Remains Stable In June

6/19/2007 10:50:17 AM Belgian Consumer Confidence Indicator stabilized at a high level in June, the National Bank of Belgium said Tuesday. The indicator stood at a reading of one in June, compared with the reading two in the previous two months and equaling the reading of February 2007.

The consumer confidence indicator is composed of four sub-indices. The indicator for the expectation in the next twelve months for the economic situation in Belgium stood at a reading of three, equal to the reading of October 2006.. This compares to reading of two in the previous month.

The indicator for expectation in the next twelve months for unemployment remained unchanged at a reading of twelve. The financial situation in the next twelve months indicator dropped a point to reach a reading of four. The saving capacity of households in the next twelve months slipped two points to a reading of eleven.



Sweden Economy Forecast To Grow 3.6% In 2007, Inflation Not To Exceed 2% Until 2009 - NIER

6/19/2007 10:36:04 AM Swedish economy is expected to grow 3.6% in 2007, the National Institute of Economic Research- NIER, said Tuesday. The institute sees GDP growth of 3.7% for 2008, which is expected to slow to 3.0% in 2009. The economy is expected to grow at a working day adjusted 3.7% in 2007. According to the forecast, the working day adjusted economic growth is set to decelerate to 3.5% in 2008 and 3.0% in 2009.

In the previous report published in March, the GDP was forecast to grow 3.9% in 2007, followed by 3.4% growth in 2008.

The report noted that the economic growth lost momentum in the first quarter of this year due to weaker than expected exports and household consumption. The NIER considers the first quarter's weaker exports and household consumption as temporary.

The institute expects employment to rise by 184,000 persons in the 2006-2009 period. The unemployment rate is seen at 4.7% this year, dropping to 4.0% in 2008 and further to 3.6% in 2009. Resource utilization on the labor market is expected to rise. The unemployment rate had been estimated at 4.3% in 2008, while employment was expected to rise by 148,000 persons, in the earlier report.

Further, the institute expects annual wages to increase between 3.2% and 4.5% in most of the principal areas. Wage increase according to the Short-Term Wage and Salary Statistics is seen at 4.3% in 2007 and increased 4.7% in 2008 in business sector. The report said “higher wage increases will limit profits and add to inflationary pressure.” The earlier report had estimated a wage growth of 4.1% in 2007, and 4.5% in 2008.

The institute said that inflation was not likely to exceed 2% until 2009. Inflation will be curbed by tax changes in the next year. The NIER expects Riksbank to raise the repo rate gradually to 4.50% in 2008 and 4.75% in 2009. The institute sees inflation slightly above the central bank target in 2009 and 2010.

General government finances are strong in relation to the set target. The NIER advised against expansionary measures in the budget this autumn.