Tougher times ahead for Swedish economy, Swedish finance minister says

Folks stroll previous market stalls at Hotorget sq., amid the outbreak of the coronavirus illness (COVID-19), in central Stockholm, Sweden October 30, 2020. TT Information Company/Amir Nabizadeh through REUTERS

STOCKHOLM, June 22 (Reuters) – Sweden’s economic system will develop extra slowly than beforehand anticipated, hit by the consequences of inflation and the conflict in Ukraine, the federal government stated in a brand new forecast revealed on Wednesday.

Companies and households bounced again shortly from the consequences of the pandemic, however the conflict in Ukraine has prolonged issues with provide chains and despatched already excessive power costs hovering, pushing up inflation throughout the board.

Sweden’s economic system had already begun to gradual, contracting 0.8% within the first quarter and the consequences of inflation, fee hikes and falling world demand can have an more and more destructive impact this yr. learn extra

“We will count on harder instances forward,” Finance Minister Mikael Damberg instructed reporters throughout a information convention.

Gross home product is predicted to develop 1.9%, the Finance Ministry stated in contrast with the three.1% predicted within the earlier forecast in April.

GDP development was seen at 1.1% in 2023, down from 1.6% seen beforehand.

The downgrade to financial development forecasts was in line these made by a variety of different organisations.

Reporting by Simon Johnson, modifying by Terje Solsvik

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