Households will reduce their consumption this autumn and winter, causing the Swedish economy to enter a recession next year. This is according to the Institute of Economic Research’s (KI) latest forecast, which also sees that future prospects have become more gloomy during the summer.
“Lack of gas in Europe means energy prices look set to hit record highs this winter,” writes KI, noting that the consumer price index with fixed interest rates will approach 10 percent.
Follow KI’s press conference in the player below.