Sweden’s government expects the economy to shrink more in 2023 than it previously expected, according to new forecasts released in connection with the spring budget.
(Bloomberg) — Sweden’s government expects the economy to shrink more in 2023 than it previously expected, according to new forecasts released in connection with the spring budget.
“We are in a very challenging economic environment,” Finance Minister Elisabeth Svantesson said in a statement. “Many people are struggling to make ends meet, so it is important for the Government to fight inflation and support those in the most difficult circumstances.”
Forecast Summary:
- 2023 GDP is now expected to shrink by 1.0% vs -0.7% seen in December forecast
- In 2024, GDP is expected to grow by 1.2% vs 1.0% growth expected in December
- 2023 CPIF inflation seen at 5.9% vs previous forecast 6.0%
- 2023 unemployment seen at 7.9% vs 7.8% previously
- Government net lending of -0.4% of GDP in 2023, previously saw a balance
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