LAST UPDATE 15:19
The Swedish economy will grow at a slightly slower pace than previously expected, the government said, with new restrictions to combat the spread of the coronavirus likely to have a slowing effect on growth.
The economy is expected to “run” at a rate of 4.9% in 2021 against an initial estimate of 4.4%, the government said.
Growth in 2022 is expected to reach 3.4% compared to the initial forecast for 3.5%, although the reintroduction of some restrictions increases the uncertainty compared to the forecast.
Sweden’s economy has recovered sharply since the pandemic, but the rise in new cases and the spread of the Omicron mutation is blurring the prospects.
“Even if it is a downward revision from the previous estimate (for 2022), it is still a strong level of growth compared to the historical average,” Finance Minister Mikael Damberg told a news conference.
“If things turn out dramatically differently, with extensive restrictions for a long time or there are global factors that will affect the Swedish economy, it will have an impact,” he added.
The government expects inflation – a level not seen since the 1990s in November – to fall to 2.1% next year, marginally higher than the central bank’s 2% target.
.
Source From: Capital
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
