Sweden’s GDP is predicted to fall more than previously expected, the Ministry of Finance has warned
The Swedish economy will shrink more in 2023 than previously expected, according to official data released on Monday.
Gross domestic product (GDP) is now forecast to fall by 1%, compared with the 0.7% decline predicted by the Treasury in December. Unemployment in the Nordic region’s largest economy is expected to rise to 7.9% this year.
“We are in a very challenging economic environment” Finance Minister Elisabeth Svantesson stated that. “Many people are struggling to make ends meet, so it is important for the government to fight inflation and support those in the most difficult circumstances.”
The Swedish government announced at the end of 2022 that the country was entering a recession that would last until 2025.
Economists say Sweden is suffering one of the worst economic downturns in its modern history, with inflation at a 30-year high and continued interest rate hikes by the central bank.
READ MORE: Sweden’s housing crisis deepens – Bloomberg
The nation has also faced its biggest drop in home prices in three decades, leading to reduced investment in new homes.
The latest data shows that bankruptcies in Sweden soared for the seventh month in a row in February, amid falling household consumption and growing pressure on construction companies from a crisis in the housing market.
For more stories about economics and finance visit RT’s business section