The Swedish economy will enter a deeper, more long-lasting recession next year than previously forecast as soaring energy prices drive up inflation, hitting households and businesses, the country's finance ministry said on Thursday.
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:
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
RNC to Hold 2024 National Convention in Milwaukee Mid-July 2024The Republican National Committee announced on Wednesday that the 2024 Republican National Convention in Milwaukee, Wisconsin, will be held from July 15 to 18 in 2024.
Lire la suite »
Cowboy Breakfast canceled for 2023, will return in 2024The 45th annual Cowboy Breakfast tentatively scheduled for Jan. 27, 2023, has been officially canceled, the Cowboy Breakfast Foundation said Tuesday.
Lire la suite »
2024 Hyundai Kona, 1,040-HP COPO Camaro, Buick’s Electra E5 EV: Your Morning Brief | Carscoops2024 Hyundai Kona, 1,040-HP COPO Camaro, Buick’s Electra E5 EV: Your Morning Brief | Carscoops carscoops
Lire la suite »
Jan. 6 fallout set to spill into 2023 and 2024: The NoteThe work of unpacking what happened two years ago and what it continues to mean will spill well into next year and the next election cycle. In the words of Chairman Bennie Thompson, D-Miss., that makes for 'strange and uncharted waters.'
Lire la suite »
2024 Acura ZDX And ZDX Type S Take Shape Before Next Year's Unveiling | CarscoopsAs with its Honda Prologue brethren, the Acura ZDX utilizes GM's BEV3 platform and Ultium battery and drive systems
Lire la suite »