Rising inflation is expected to put a damper on the Swedish economy
Swedish authorities have lowered the country’s economic growth outlook for next year citing rising inflation, Finance Minister Mikael Damberg said on Thursday.
Stockholm raised its forecast for economic growth to 2.3% in 2022 from a June prediction of 1.9%, but cut the outlook for next year to 0.4% from 1.1%.
“We are approaching tougher times and a low growth phase,” Damberg told reporters after warning of a sharp decline in the second half of 2022.
The minister added that it would be necessary to prioritize and manage fiscal policy responsibly, as high inflation is usually combined with rising unemployment.
The government expects inflation to reach 7.3% in 2022 and 3.9% next year, compared to the previous forecasts of 6.1% and 2.9% respectively.
Earlier this month, Statistics Sweden reported that inflation in the country unexpectedly eased in July after five months of acceleration. Consumer prices rose 8.5% year-on-year, slower than the previous month’s 8.7%, which was the highest since July 1991.
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Source: sn.dk