October 26, 2022
1 min read

Leading bank says Sweden’s GDP will shrink in 2023

The Swedish central bank’s policy rate is expected to increase from the present 1.75 per cent to 3 per cent by February…reports Asian Lite News

High inflation and interest rate hikes will affect many Swedish households and slow down the country’s economic growth next year, a leading bank said in a report.

Sweden’s gross domestic product (GDP) growth is expected to be minus 1.1 per cent next year, said Mattias Persson, Swedbank’s chief economist and global head of macro research, in an interview with Swedish Television (SVT).

The Swedish central bank’s policy rate is expected to increase from the present 1.75 per cent to 3 per cent by February, according to Swedbank’s latest economic outlook.

It expects inflation and unemployment rate to reach 7.4 per cent and 7.6 per cent respectively in 2023.

In consequence, Swedish households are expected to spend a higher proportion of their disposable income on mortgages since the 1990s, a situation which Persson said would have a wider effect on the Swedish economy.

“The labour market still shows resilience, but the situation is expected to worsen when employment-intensive industries such as retail and construction are affected,” Persson told SVT.

ALSO READ: Focus on India-UK ties as Sunak becomes PM

Previous Story

King Charles offers Diwali sweets to Sunak

Next Story

‘Dirty bomb warning fits Russia record of deception’

Latest from Europe

Russia and Ukraine swap hundreds more prisoners

Ukraine’s President Volodymyr Zelensky and Russia’s defense ministry said each side brought home 307 more soldiers on Saturday Russia and Ukraine exchanged hundreds more prisoners on Saturday as part of a major

Op Sindoor Outreach: Russia Backs India on Terror

Russian side strongly condemned the recent terrorist attack in Pahalgam and reiterated its solidarity with India in the global fight against terrorism in all its forms…reports Asian Lite News Denouncing the brutal

India Reaffirms Anti-Terror Stand

The delegation later called on former Japanese Prime Minister Yoshihide Suga, now Vice President of the ruling Liberal Democratic Party and Chairman of the Japan-India Association. Suga reiterated Japan’s firm backing for

Jaishankar hails Denmark’s support against terrorism

Jaishankar’s visit saw key meetings with Danish leadership, reaffirmed mutual efforts to fight terrorism, and included outreach to other international partners like Bahrain and Montenegro…reports Asian Lite News External Affairs Minister S.

Jaishankar Meets Dutch PM in The Hague

The two leaders also discussed strengthening bilateral cooperation across various sectors….reports Asian Lite News External Affairs Minister (EAM) S. Jaishankar met with Dutch Prime Minister Dick Schoof in The Hague on Tuesday,
Go toTop

Don't Miss

UK shelves proposals to raise capital gains tax

In contrast, the government accepted five recommendations made by the

Kashmiri delegation meets British MP, discusses PoK human rights issues  

The delegates briefed MP Andrew McDonald about the restrictions on