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Sweden’s finance minister warns of recession that will last until 2024.

According to the country’s finance ministry, the Swedish economy will experience a deeper and longer-lasting recession than previously anticipated in 2019 as rising energy prices push up inflation and hurt both households and businesses.


In 2023, Sweden’s gross domestic product is now projected to fall by 0.7%, as opposed to the 0.4% decline predicted in November. Headline inflation is forecast to increase to 6% in 2023 from the previously estimated 5.2%.


Finance Minister Elisabeth Svantesson said at a news conference, ‘I said in October that Sweden was heading towards an economic winter and what we see now is that the winter looks to be more protracted than we thought’.


She stated, ‘The weak development… appears to not bottom out until 2024.’


According to the ministry, the economy will now only grow by 1% in 2024 (down from the previously predicted 2% growth) before rebounding to 2.7% growth in 2025.


Recent months have seen a worsening of the mood in Swedish households as a result of rampant inflation, rising mortgage costs, and record-high electricity prices. In November, consumer confidence was almost at a record low.


‘It is crucial to note that the current situation is one of an energy crisis rather than an economic one. Although many people are really struggling, the economy isn’t as bad as a whole, ‘said Svantesson.


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