Swedbank Economic Outlook: Belt-tightening for the Swedish economy
The Swedish economy is slowing down markedly. Inflation has peaked, but the Riksbank is expected to continue raising the policy rate until the summer. At the beginning of next year, policy rate cuts should be expected, according to Swedbank Economic Outlook.“Household interest-rate sensitivity is higher than ever, and this means that higher interest rates are rapidly deteriorating the scope for other household consumption this year. Unemployment is also starting to rise as companies cut their costs, which is further weakening purchasing power and is creating a challenge for households,”