LAST UPDATE 10:48
Sweden’s economic growth will slow sharply this year and inflation is expected to soar, making it difficult for the central bank to set monetary policy, according to estimates by the National Institute for Economic Research (NIER).
The Swedish think tank now expects the Nordic country’s economy to grow by 1.9% in 2022, lower than previous estimates of 3.3% in March and lower than 5.1% last year.
In 2023, GDP will grow by only 1.2%, as predicted by NIER.
It also predicts that overall inflation will average 6.8% this year from 5.2% in March, before falling to 3.2% in 2023.
“The Riksbank is facing a difficult balancing act in choosing how much it should tighten monetary policy in order to curb inflation while preventing the recession from becoming too abrupt,” the NIER said.
Source: Capital
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