2023 was a year of frugality for many households, where purchases of goods and services decreased sharply. The annual Consumption Report from the University of Gothenburg reveals that the consumption of furniture, household items, alcohol and tobacco fell significantly, and many also cut back on food and clothing.
– Virtually all areas of consumption decreased in 2023 compared to 2022. We have not seen such a broad decline since the 1990s, says Ulrika Holmbergconsumption researcher at the Gothenburg School of Economics in one press release.
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Inflation pushed up the consumer price index by 8.5 percent and made goods and services more expensive.
– Prices for food and accommodation increased the most, 12 percent each, two areas where households have large expenses. This means that households have had to cut back on consumption volume to make ends meet, says Ulrika Holmberg.
In fixed prices, consumption decreased by 2.6 percent, while at current prices, including inflation, it increased by 3.5 percent. The Swedes thus bought fewer goods and services but paid more for them.
Photo: Fredrik Sandberg/TTO Expected priority
But in the midst of the downturn, an unexpected priority emerged. During last year, consumption abroad increased sharply, especially through trips abroad. It is a new consumption pattern that previously did not stand out in the survey.
Compared to 2021, foreign consumption was 40 percent higher in 2023. Streaming services and internet purchases from abroad also rose in popularity.
– This shows how important it is for households to travel and shop internationally. Despite tough economic times and a weaker krona, foreign consumption has increased, says Holmberg.
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