Question 1

In response to heightened geopolitical tensions and the conflict in Ukraine, which two Nordic countries significantly boosted their defense spending in late 2024, with Norway increasing its budget by 70% since 2021 and Sweden planning to raise its defense spending to 2.6% of GDP by 2028?

Accepted Answer

Norway and Sweden

Question 2

Which Nordic country is on track to achieve 100% renewable electricity generation by 2026, a milestone driven by policies aligning government incentives, private investment, and citizen participation, particularly in wind energy?

Accepted Answer

Denmark

Question 3

Amidst global economic uncertainty and trade disruptions, what is the projected trend for fiscal and monetary policies across the Nordic economies in 2025, according to Oxford Economics?

Accepted Answer

Significant monetary policy easing and sizeable fiscal loosening

Question 4

The recent imposition of US tariffs and increased geopolitical uncertainty have led to a reassessment of global trade. How have the Nordic economies, despite being export-dependent, generally responded to these rising trade barriers and increased tariffs, as of early 2026?

Accepted Answer

They have experienced only a limited impact, with businesses adjusting well to the changes.

Question 5

In 2025, Sweden's Riksbank maintained its policy rate unchanged at 1.75% for its sixth consecutive meeting. What were the primary reasons cited for this extended pause, following cumulative cuts since May 2024?

Accepted Answer

Low inflation remaining below the 2.0% target and muted economic activity, despite risks from the Middle East conflict.

Question 6

The Nordic countries have agreed to cooperate on mapping trade flows and addressing global supply chain risks to food supplies. This initiative, stemming from the Karlstad Declaration in June 2024, acknowledges a critical regional vulnerability. What is this primary vulnerability?

Accepted Answer

High dependency on global trade.

Question 7

As of early 2026, global defense spending has continued to grow. Nordic countries, including Denmark, Finland, Norway, and Sweden, reached a combined spend of USD 53.7 billion in 2025. This figure represents what level of increase compared to 2020?

Accepted Answer

More than double 2020 levels.

Question 8

Despite challenges such as volcanic activity, Iceland's tourism sector showed a strong recovery. Preliminary data suggests tourist arrivals remained unchanged year-on-year in 2025, with visitors tending to stay longer and spend more. What is the estimated number of international tourists visiting Iceland in 2025?

Accepted Answer

Approximately 2.6 million

Question 9

Sweden has one of the highest carbon taxes globally, set at SEK 1,510 per tonne of CO2 in 2025. What is the primary economic effect of such a policy, as indicated by Nordic energy transition strategies?

Accepted Answer

Significantly incentivizing low-carbon technologies and discouraging fossil fuel use.

Question 10

In Norway, the government expects significantly higher revenue from oil and gas production in 2026 due to increased energy prices driven by the Iran war. How is this windfall revenue intended to be managed by the government?

Accepted Answer

Added to its sovereign wealth fund.

Question 11

According to SEB's macroeconomic report 'Nordic Outlook' in May 2025, what is the projected annual global GDP growth for 2025 and 2026, influenced by the new US administration's aggressive trade policy?

Accepted Answer

Less than 3 per cent.

Question 12

In response to global trade tensions and geopolitical uncertainty, a study funded by the Nordic Council of Ministers highlighted shared vulnerabilities among Nordic countries. What is identified as a primary source of intermediate goods for most Nordic countries?

Accepted Answer

Other European countries.

Nordic Economies Navigate Global Shocks: Defense Spending Surges, Green Transition Accelerates, and Trade Tensions Mount

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