December 23, 2022
1 min read

Swedish govt expects recession to last until 2025

Unemployment is expected to grow to 7.8 per cent in 2023 and 8.2 per cent in 2024. Both figures are higher than in the previous forecast…reports Asian Lite News

Sweden will enter a recession in 2023 that is expected to last until 2025, the government said here on Thursday.

“The Swedish economy and households will be under pressure in the coming years,” Finance Minister Elisabeth Svantesson said when she presented the economic forecast at a press conference.

“The recession is expected to be more prolonged than forecast in the Budget Bill, and it does not appear that it will hit bottom until 2024,” Svantesson said.

Inflation measured by the consumer price index (CPI) is expected to reach an average of 8.9 per cent in 2023, and combined with the rapidly increasing interest rates and the weakened demand in the rest of the world this is expected to lead to gross domestic product (GDP) shrinking by 0.7 per cent in 2023 — a downward adjustment from the previous forecast.

Unemployment is expected to grow to 7.8 per cent in 2023 and 8.2 per cent in 2024. Both figures are higher than in the previous forecast.

“In the current situation, it is important that fiscal policy be carefully considered. The worst-case scenario for households and businesses already facing financial difficulty would be a further increase in inflation. The government’s budget for next year has undergone cuts aimed at combating inflation, while providing room to act should the economic downturn be worse than expected,” Svantesson said.

ALSO READ-NATO membership for Sweden remains far off: Turkey

Previous Story

Scottish Parliament votes to approve gender identity law

Next Story

Bilawal snubbed by Blinken on his US visit

Latest from -Top News

UN Faces Crisis, Says Rajnath

Rajnath Singh said India recognises that the success of peacekeeping depends not only on numbers but on preparedness….reports Asian Lite News Defence Minister Rajnath Singh on Tuesday highlighted the urgent need for

UK to host summit on Gaza recovery plan

The three-day conference, beginning Monday afternoon, will take place at Wilton Park, the Foreign Office’s policy forum based in West Sussex The UK will host an international summit on the recovery and

India, Australia Begin AUSTRAHIND

The AUSTRAHIND exercise, which followed Defence Minister Rajnath Singh’s recent visit to Australia, reaffirmed the deepening defence cooperation between the two nations…reports Asian Lite News Strengthening the expanding defence partnership between India

Violence Mars TLP Rally in Pakistan

The Pakistani police and rangers launched an operation to disperse TLP supporters after violence broke out during the march….reports Asian Lite News At least four people, including both police officers and civilians,

‘Modi’s a Very Good Friend’: Trump

Trump’s remarks come days after Modi called him to congratulate on the “success” of the Gaza peace plan….reports Asian Lite News US President Donald Trump on Monday lauded India and described Prime
Go toTop

Don't Miss

Sweden boosts defence spending to meet NATO target

The Swedish government decided to seek NATO membership in May

UK likely in recession, indicates analysis

Economists have predicted that GDP slipped 0.1% in the three