Inflation is harder to bring down than expected and the recession is therefore judged to be more protracted and weaken the state’s finances in both 2024 and 2025, according to the forecast.
– Inflation is far too high, it is also the root of all the economic problems we see, says Elisabeth Svantesson during a press conference.
The government predicts that inflation, according to the CPI measure, will be an average of 8.6 percent this year, compared to 8.8 percent in the forecast from April. In 2024, the government estimates that inflation will land at 3.6 percent, the previous forecast was at the same level.
– We have not had this situation in 30 years. Inflation makes us poorer, it is the worst enemy of wage earners. We see that it will go down but it is more inertial.
At the same time, the government raises its forecast for Swedish GDP for 2023 from minus 1.0 percent to minus 0.4 percent. Next year, the government expects the economy to grow by 0.8 percent, in the previous forecast from April the figure was 1.2 percent.
– Despite the positive glimmers of light we expect growth to fall, the forecast today is that this will be pushed forward, both the economic situation and the decline in inflation. What is surprising is that we have a strong labor market.