Sweden: Gloomy forecast for economy

Finance Minister Elisabeth Svantesson
Photo: Ninni Andersson/Regeringskansliet

The Swedish economy is expected to enter into recession in 2023 amid rising unemployment, according to the Ministry of Finance’s latest economic forecast.

Minister for Finance Elisabeth Svantesson presented the forecast today.

Households and businesses are under pressure from high inflation and rising interest rates. The Swedish economy is expected to enter into recession in 2023 and unemployment is forecast to rise.

The employment rate and labour force participation have increased in 2022, but unemployment remains high.

“The forecast for the Swedish economy is gloomy and there is a substantial likelihood of developments being worse than in the main scenario,” says Ms Svantesson. “For this reason, it is important that Swedish fiscal policy be well balanced in relation to both the need to bring down high inflation and to manage the economic downturn.” 

“The Government is examining all the reform proposals taking fiscal scope and the fiscal policy framework into consideration,” says Ms Svantesson. “Good order in the public finances is a priority issue. We will need to secure room for manoeuvre to safeguard the Swedish economy, support affected households and businesses, and strengthen welfare, the justice system and defence.”

Swedish Government