Breaking News
Investing Pro 0
🚨 Our Pro Data Reveals the True Winner of Earnings Season Access Data

Swedish economy heading for 'tough winter', new finance minister says

Economy Oct 31, 2022 07:26AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. A view of the Bromma Airport in Stockholm, Sweden May 1, 2021. REUTERS/Simon Johnson/Files

By Johan Ahlander and Anna Ringstrom

STOCKHOLM (Reuters) -The Swedish economy is heading into a recession next year, driven by rampant inflation and the war in Ukraine, the country's new finance minister said on Monday.

The economy is now expected to contract by 0.4% in 2023, and there is significant risk that the outcome could be even weaker, Finance Minister Elisabeth Svantesson said in presenting her first economic forecast since the September election, in which a right-wing bloc secured a slim majority.

The Nordic country's previous government had in August forecast growth of 0.4% in 2023.

"Sweden's economic outlook is gloomy and we're heading for a tough winter," Svantesson told a news conference, adding that there was a high risk developments will be even weaker than the main scenario.

The finance ministry also raised its outlook for inflation, forecasting consumer price rises at fixed rates of 7.9% this year and 5.2% next year, up from the August projection by the previous government of 7.3% and 3.9% respectively.

Svantesson pledged to stick to Sweden's fiscal policy framework under which public finances are run at a 0.3% of GDP surplus over an economic cycle. It is widely credited with having a significant impact on Sweden's strong public finances.

"For us and me, it is important that fiscal policy in this situation is well balanced, that fiscal policy does not fuel inflation. And we will stick to the fiscal policy framework, and thereby ensure that we have room for manoeuvre if next year becomes even more difficult," she said.

Swedish economy heading for 'tough winter', new finance minister says
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email