The Swedish Economic Research Institute (NIER), a well-known think tank, said today that the Swedish economy will shrink more than previously expected in 2023 before rebounding in 2024.
The Swedish economy is expected to shrink by 0.9% in 2023, compared with a June forecast of a 0.4% contraction.
Growth in 2024 is expected to be 1.2%, compared with a previous forecast of 1.4%.
Russia-Uzbekistan conflict, soaring inflation, rising interest rates and plummeting real estate prices have finally overwhelmed businesses and households. The economic slowdown should ease the pressure on rising prices, but inflation has proved stubborn. NIER maintained its overall inflation forecast for the year at 6.1 %constant.
The Riksbank is expected to end the year with a policy rate of 4.00%, compared with a forecast of 3.75% in June.
