Sweden is heading into a recession, according to Finance Minister Mikael Damberg (S). The government makes a huge reduction in the forecast for growth in 2023, down to 0.4 percent.
– High inflation and increased interest rates affect households so that the Swedish economy slows down, he says.
Damberg appeals for caution from all sides, to avoid a protracted crisis with wage and price spirals that prolong the period of inflation that eats up Swedish real wages.
Hear Damberg explain the situation – in the player above.