On Wednesday morning, the Economic Institute presents the Economic Situation – a report that means gloomy figures for the Swedish economy.
In a press release it is written that “high inflation and rising interest rates have eroded the purchasing power of households at the same time as weak external demand hits the export industry”, which contributes to the deepening of the recession next year.
A slight turnaround is predicted in the second half of 2024, but it will take until 2026 before the Swedish economy is in “cyclical balance”. Swedish GDP is expected to shrink by 0.6 percent this year, only to recover by 1 percent in 2024, according to KI’s economists.
According to the forecast, the Riksbank will raise the policy rate one more time in November. It will then stand still until the third quarter of next year, when the Riksbank starts to lower the interest rate again.
At 09.30 the Norwegian Economic Institute holds a press conference on the new report.