Sweden is going through a prolonged “economic winter” due to the persistence of high inflation and is concerned about the uncertainty of the international context, the Minister of the Economy said on Wednesday.
“We are still in an economic winter,” declared Élisabeth Svantesson when presenting the economic situation at a press conference.
The Swedish economy contracted in the second quarter (-0.8% compared to the previous quarter) and the country suffers from persistent inflation, combined with a fall in its currency, the Swedish krona.
“Inflation is falling, but underlying inflation remains high,” the minister stressed.
Increase in unemployment
Inflation has risen to +6.5% in October and a year, after which it reached +12.3% in December, so that the central bank has risen to 4%, with higher levels later. 15 years.
The Government is also concerned about the increase in the unemployment rate to 7.7% (seasonally adjusted data) in the third quarter.
The minister warned of a deterioration in the economic situation if energy prices rose due to the war between Israel and Hamas or if the slowdown in growth in Europe was more pronounced than expected.
“If things were to get even worse, with a significant recession, for example, there is room for maneuver because we have presented a neutral budget,” he added.
The Swedish government expects 1% growth next year after a 0.8% contraction this year and expects inflation to decline to 4% in 2024.
Source: BFM TV
