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

Trump Targets BRICS Allies with New Tariff

This move coincides with the ongoing BRICS summit being held in Rio de Janeiro, Brazil…reports Asian Lite News US President Donald Trump has announced that an additional 10 per cent tariff will

BRICS Endorses India’s Stand on Terror

The treaty proposed by India within the UN framework aims to provide a comprehensive legal basis for combating terrorism….reports Asian Lite News The leaders’ joint statement, issued after the 17th BRICS summit

BRICS Slams US Tariff Hikes

The leaders criticised developed nations for using environmental issues to justify trade restrictions on developing countries….reports Asian Lite News Rio de Janeiro, July 7 (IANS) Embroiled in a trade war launched by

US Tariffs Pushed to August Amid Talks

In April, Trump announced a base tariff of 10 per cent on most of America’s trading partners and thereafter additional duties ranging up to 50 per cent….reports Asian Lite News US President

Indonesia Joins BRICS Bloc

This year’s BRICS Summit saw an expanded format, reflecting the grouping’s growing relevance in international affairs….reports Asian Lite News Prime Minister Narendra Modi formally welcomed Indonesian President Prabowo Subianto into the BRICS
Go toTop

Don't Miss

Turkey gets tough on Sweden, Finland over Quran burning

The trilateral meeting was slated to take place in February…reports

Brace for 2 years of recession  

UK’s manufacturing sector shrank by more than 4% this year,