Sweden's gross domestic product is now expected to contract by 0.7% in 2023, compared to a November forecast for a 0.4% decline, while headline inflation is predicted at 6% next year, up from 5.2% seen earlier.
"I said in October that Sweden was heading towards an economic winter and what we see now is that the winter looks to be more protracted than we thought," Finance Minister Elisabeth Svantesson told a news conference.The economy is now seen growing by just 1% in 2024, down from 2% seen previously, before recovering to growth of 2.7% in 2025, the ministry predicted.
Swedish households have become increasingly gloomy in recent months, hit by rampant inflation, rising mortgage costs and record-high electricity prices."It is important to say that right now, we are not looking at an economic crisis, we are looking at an energy crisis. Many individuals are really struggling ... but the economy as a whole isn't," Svantesson said.
The country's central bank has hiked interest rates four times this year to 2.50% to combat the spiralling inflation. November CPIF, the inflation target measure for the Riksbank, was 9.5% in November, way above the 2% target.Our Standards:
So it will last long enough to blame on the current leadership before the next elections, regardless of the years it took under the old regime to get you there.