Swedbank Economic Outlook: Two tough years ahead for the Swedish economy
The Swedish economy is stagnating in the wake of continued high inflation and eroded purchasing power. The Riksbank is expected to continue raising the policy rate until June and fiscal policy is austere, which will further weaken household consumption, according to Swedbank Economic Outlook.“In Sweden, household purchasing power is under pressure from high inflation. Last year, purchasing power fell by almost SEK 190 billion due to the price increases alone, and we expect it to continue to decline by about the same amount. Households’ interest costs have doubled, and we expect them to