Swedish economic recovery underway
Published
After a weak start to the year, activity in the Swedish economy has picked up and an economic recovery has begun. Domestic demand, strengthened by an expansionary fiscal policy, has driven the recovery and is expected to continue to do so next year. Minister for Finance Elisabeth Svantesson has presented a new forecast of economic developments.
Swedish economic recovery has begun
GDP growth has been somewhat stronger than expected and the recovery has begun. Looking ahead, it is primarily domestic demand that is expected to drive growth. Rising incomes and pent-up consumption are expected to contribute to increased household consumption in 2026. Business investment is also expected to grow at a faster rate than in recent years.
Unemployment remains high, but from the start of 2026 it is expected to gradually decrease as demand for labour increases.
“The recovery of the Swedish economy is now underway. By ensuring that everyone has more money to spend, with a focus on public consumption and investments, our fiscal policy is supporting the recovery, and the recession is forecast to end by 2027,” says Ms Svantesson.
Stronger global economic development than expected
US import tariffs have thus far had less of an impact on the global economy than originally feared. Trade policy uncertainty has decreased somewhat but it remains elevated. However, uncertainty is expected to leave its mark later on, and the global economy is expected to grow at a moderate pace going forward.
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