The rampant inflation, the weak krona and the housing crisis offer major challenges for the Swedish economy.
But former Finance Minister Anders Borg believes that the trend should soon reverse.
– Jag think that you can very well imagine that it will be a little brighter in the next year.
The costs of living in Sweden continue to rise. The inflation rate is high and currently stands at 9.3 percent if you include the increased interest rates. In addition, Swedish food companies have recently announced that food prices are expected to continue to rise.
The Swedish krona has also weakened significantly against other currencies. One euro now costs 11 kroner and 90 öre, compared to around 8 kroner ten years ago – and the dollar has risen to over 11 kroner compared to around 6 kroner ten years ago.
The increasing costs have also caused housing construction in Sweden to be disrupted. During the first half of 2023, the construction of 14,550 apartments began – a figure that shows more than a halving compared to the same period last year. And it is the sharpest decline seen in the housing market since the 90s crisis.
“Not a deep crisis”
The rampant inflation, the weak krona and the housing crisis have together created a challenging economic situation for both residents and businesses. But former Finance Minister Anders Borg believes that the trend will soon reverse – and wants to reassure those who worry about a possible financial crisis.
– I think that this is the worst part of the process that we are in now, but I think that you can very well imagine that it will be a little brighter in the next year.
Anders Borg believes that certain conclusions can be drawn from the fact that the global economy has already turned. Because in most countries inflation is now falling, something that will eventually also affect the Swedish economy.
– I don’t think you should dramatize this into a deep crisis. Now we will probably eventually get the last interest rate increase, and eventually the government will make some tax breaks and investments in the municipalities and then I think that next year and the year after will be a little easier.
Advice for households
Anders Borg has a couple of concrete pieces of advice for Swedish households about what is most important to think about until the negative trend finally reverses.
– Make sure you keep your job and try to negotiate the salary. Be careful with your savings and don’t buy expensive things in this situation – but have some buffers in your finances.