Tougher times ahead for Swedish economy, says Swedish finance minister
2022 GDP is expected to grow by 1.9% vs pvs forecast of 3.1%
2023 forecast 1.1% vs. 1.6%
Adds finance minister quote, background and graphic
STOCKHOLM, June 22 (Reuters) – Sweden’s economy will grow slower than expected, hit by the effects of inflation and the war in Ukraine, the government said in a new forecast released on Wednesday.
BBusinesses and households have recovered quickly from the effects of the pandemic, but the war in Ukraine has prolonged supply chain problems and pushed up already high energy prices, driving up inflation across the board. .
The Swedish economy had already started to slow, contracting by 0.8% in the first quarter and the effects of inflation, rate hikes and lower global demand will have an increasingly negative effect this year. .
“We can expect tougher times ahead,” Finance Minister Mikael Damberg told reporters at a news conference.
Gross domestic product is expected to grow 1.9%, the finance ministry said, compared with 3.1% forecast in the previous April forecast.
GDP growth was estimated at 1.1% in 2023, compared to 1.6% previously.
JThe downward revision of economic growth forecasts was in line with those made by a number of other organisations.
Swedish economy: http://tmsnrt.rs/2bylYpf
(Reporting by Simon Johnson, editing by Terje Solsvik)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.