On Wednesday morning, the Economic Institute, KI, presented its report The Economic Situation. In the report, it appears that KI assesses that inflation will fall to the Riksbank’s inflation target of two percent in mid-2024.
Inflation may even be lower than the target in the second half of the year. The forecast indicates that the Riksbank can lower the interest rate around the summer of 2024, according to KI.
“Inflation is falling and in the second half of 2024 it is clearly below the Riksbank’s inflation target,” the report states.
KI’s main picture is 2024 will be a tough year for households in Sweden, but there is hope.
“In 2024 wages will rise faster than prices. Together with a lower key interest rate, it will give both households and companies increased scope for consumption and investment,” the report states.
At the same time, the country’s economy will grow again from 2024, although growth is still low.
The report also states that the labor market is slowing down. Unemployment looks set to rise in 2024.
“Unemployment continues to rise and peaks at 8.5 percent at the end of 2024,” writes KI.