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Nominal Wage Growth Moderates In April, But Real Wages Remain Positive

SWEDEN

Swedish wages moderated in April, with the National Mediation Office measure at 4.2% Y/Y (vs 4.5% prior). Despite expecting a deceleration in nominal wage growth over the year, the Riksbank expects real wages to continue improving as inflation heads towards the 2% target.

  • In April, real wages were 1.9% Y/Y (vs 2.4% in March, 1.7% in February).
  • Statistics Sweden’s measure of non-manual workers wages also fell to 4.7% Y/Y (vs 5.1% prior).
  • A reminder that Swedish unions signed a 2-year wage agreement in April 2023, with wages rising 4.1% in the first year and 3.3% in the second.
  • As such, further decelerations in nominal wage growth should be seen in the coming months, in line with the Riksbank’s forecasts.

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Swedish wages moderated in April, with the National Mediation Office measure at 4.2% Y/Y (vs 4.5% prior). Despite expecting a deceleration in nominal wage growth over the year, the Riksbank expects real wages to continue improving as inflation heads towards the 2% target.

  • In April, real wages were 1.9% Y/Y (vs 2.4% in March, 1.7% in February).
  • Statistics Sweden’s measure of non-manual workers wages also fell to 4.7% Y/Y (vs 5.1% prior).
  • A reminder that Swedish unions signed a 2-year wage agreement in April 2023, with wages rising 4.1% in the first year and 3.3% in the second.
  • As such, further decelerations in nominal wage growth should be seen in the coming months, in line with the Riksbank’s forecasts.