Latest news with #ElisabethSvantesson
Reuters
3 days ago
- Business
- Reuters
Swedish economy shrank in first quarter, revised data shows
STOCKHOLM, May 30 (Reuters) - Sweden's gross domestic product shrank 0.2% in the first quarter of 2025 from the previous three month period and grew 0.9% compared to the same quarter a year earlier, final figures from the Statistics Office showed on Friday. Flash figures published at the end of last month showed GDP was unchanged in the first quarter compared to Q4 2024 and had expanded 1.1% compared to the same quarter a year earlier. Household consumption and business investment in building and construction fell, while exports were a positive contribution to GDP. Analysts had expected the quarterly figure to be revised up slightly to 0.1% growth. Earlier this month, the Swedish government cut its forecast for this GDP growth this year and next as a result of the on-again, off-again tariffs threatened by U.S. President Donald Trump. The government expects still-decent growth of 1.8% in 2025 and 2.3% in 2026, though Finance Minister Elisabeth Svantesson said risks were that the outcome could be worse.
Reuters
09-05-2025
- Business
- Reuters
Sweden cuts GDP growth forecasts, sees downside risks
STOCKHOLM, May 9 (Reuters) - The Swedish government on Friday cut its GDP growth forecast for this year and next, saying global trade frictions had cast a pall over the economy and increased uncertainty about the outlook. Sweden's economy will expand 1.8% this year and 2.3% in 2026, Finance Minister Elisabeth Svantesson told a press conference. The government's forecast from April was for growth of 2.1% this year and 2.8% in 2026, though Svantesson had flagged those forecasts would need to be revised lower. GDP grew 1.0% in 2024. U.S. President Donald Trump's on-again, off-again tariffs have roiled markets and led the International Monetary Fund, opens new tab recently to sharply cut its forecast for global growth. Germany, a key trading partner for Sweden, won't grow at all this year, according to the IMF. While Sweden's economy looks to be in better shape than many others, Svantesson said there was a risk the updated forecasts would need to be lowered further. "It is a fairly dark picture that we see," she said. Sweden has strong government finances and is able to do more for the economy if needed, Svantesson said, adding that measures to support growth could even come before the autumn budget, if needed. Svantesson said expansionary policies adopted in last year's budget and in the spring fiscal bill had put Sweden in a strong position to weather the storm. "We feel that we are on the right track in the sense that we have a growth budget focused on investments that support companies, investments that make our infrastructure work better... and lower taxes," she said. On Thursday, the Swedish central bank kept its key rate on hold but opened the door to easier policy ahead if its main scenario of lower growth and more moderate inflation materialises.
Reuters
15-04-2025
- Business
- Reuters
Swedish spring budget pledges $1.2 bln in extra spending
STOCKHOLM, April 15(Reuters) - Sweden's government said on Tuesday it will raise spending by around 11.5 billion Swedish crowns ($1.18 billion) this year, to support economic recovery under threat from global trade friction. "The US decision on significantly raised tariffs has caused Sweden is on stable economic ground and able to take further action should the need arise," Finance Minister Elisabeth Svantesson said in a statement. Svantesson had already warned that economic growth would be negatively affected by uncertainty surrounding the effects of on-again, off-again tariffs announced by U.S. President Donald Trump.
Local Sweden
14-04-2025
- Business
- Local Sweden
What do we know about Sweden's 2025 spring budget so far?
The Swedish government is set to present its spring amendment budget on April 15th, but we already know some policies which are likely to be included. Advertisement What is the spring amendment budget? The spring amendment budget (vårändringsbudgeten) is usually mainly used to tweak or add bits and pieces to Sweden's main annual budget, which was presented last autumn. This year's spring amendment budget will be submitted to parliament on April 15th. What do we know so far about what's in it? Finance Minister Elisabeth Svantesson has said that there will be 11.5 billion kronor of reforms in the spring amendment budget, including among other things an increase to the ROT tax reduction which currently allows households to claim back 30 percent of the cost of labour on maintenance work such as repairs, conversions and extensions. Under the new proposal, which is expected to cost the government 4.35 billion kronor, the ROT reduction will be increased temporarily to 50 percent from May 12th until the end of the year in order to kickstart the economy. This will take up 40 percent of the budget. According to economist Shoka Åhrman from pension company SPP, most households are unlikely to see the effects of this on their finances. 'The ROT reduction is an issue that will affect some people's wallets, but in reality not for everyone,' she told the TT newswire. 'It's usually used by people with higher incomes.' She added that it's not uncommon for the spring amendment budget to have few posts that will directly affect Swedes' personal finances. 'Changes in the spring usually affect the economy more broadly, it's not that usual for there to be concrete changes as far as personal finances are concerned.' 'Having said that, the previous decisions on lower tax for work and pensions will remain active.' Advertisement The government and the Sweden Democrats have also agreed to put aside 500 million kronor for road maintenance. There will also be proposals concerning summer jobs for young people and reforms of professional higher education courses to offer more, shorter courses (700 million kronor). In addition to this, 500 million kronor will go towards mental healthcare for both adults and young people, and 484 million will go to the Swedish Prison and Probation Service, in part to increase the number of spaces in prison and pre-trial detention. Another 357 million will go towards preventing youth crime, including 200 million for increased places in SIS homes – compulsory care homes for young people involved in crime, with psychosocial problems or with substance abuse issues. Following the school attack in Örebro in February, 353 million kronor has been earmarked for increased security in schools. The government and the Sweden Democrats have also allocated 35 billion kronor to defence, 16.5 million will go to Ukraine, and 96 million kronor has been put aside for what the government describes as a 'targeted package of measures against hybrid threats'. Planned reforms to a-kassa unemployment insurance, which would tie the benefit to income rather than hours worked, will also be brought in earlier, in August instead of at the beginning of October. Another 6.5 billion kronor will go to Klimatklivet, an investment support programme for regions and municipalities to reduce carbon emissions, and 2.2 billion kronor to Industriklivet, a similar programme to finance innovation in industry which will benefit the environment. Other smaller posts include 30 million kronor to national mapping agency Lantmäteriet, to better protect classified information and hire new staff and 71 million kronor to the Swedish Maritime Administration to fund sea and air rescues. Schools will be allocated 82 million kronor to cover the costs of carrying out national tests on paper instead of digitally this spring, and 7 million kronor will be allocated to Swedish county boards to help manage wolf populations. Advertisement Is there anything which didn't make it into the budget? According to SVT, the government had plans to give families an extra month of child benefit this year at a cost of 2.5 billion kronor to the state. This was meant to boost families' finances, especially those with low incomes, as well as stimulate the economy. Sources speaking to SVT said that the proposal was rejected by the Sweden Democrats, with an anonymous source within the Sweden Democrats explaining that the child benefit system should be reformed instead. 'Unlike certain other parties, we want money to go towards working families who are struggling, and not to migrants in areas of exclusion who have come to Sweden to live off benefits without wanting to adapt to society.' The same source said that the Sweden Democrats had instead called for a cut to tax on food, which was rejected by the other parties.
Local Sweden
24-03-2025
- Politics
- Local Sweden
Immigration laws and tax rebates: What changes in Sweden in April 2025?
Easter Easter this year will take place at the end of April, with Swedish children starting the festivities by dressing up as witches and collecting pick 'n' mix for their Easter eggs on Maundy Thursday, April 17th. Good Friday, Easter Sunday and Easter Monday are public holidays. Easter holidays vary depending on what city you're in, but will take place either the week before Easter (week 16, April 14th-20th) or the week after (week 17, April 21st-27th). Track changes law will be repealed From April 1st, Sweden will scrap spårbyte ('track change') , an immigration path which has meant that rejected asylum seekers could receive a work permit without having to leave the country to apply, provided they met all the other work permit requirements. 'We didn't do anything wrong': Foreign workers blindsided by Sweden's 'spårbyte' repeal After that date, it will no longer be possible for those who have been granted a work permit through this kind of track change to be granted an extension, which means that they may have to leave Sweden when their current permit expires. Around 4,700 people will be affected by the abolition of track changes, according to the Migration Agency's estimates. The rule change will only affect people who have switched from the "asylum track" to the "work permit track" and their families. It won't affect people who have changed their permits on other grounds . Tax rebates due Those who approved their tax declarations for the 2024 tax year digitally by April 2nd with no alterations should get any tax rebate due to them paid out between April 8th and April 11th. May 2nd is the overall deadline for declaration submission. If you submit by this date, you'll receive your tax rebate by June 5th. Spring amendment budget announced The spring amendment budget ( vårändringsbudgeten ) is usually mainly used to tweak or add bits and pieces to Sweden's main annual budget, which was presented last autumn. This year's spring amendment budget will be submitted to parliament on April 15th. Finance minister Elisabeth Svantesson has said that there will be 11.5 billion kronor of reforms in the spring amendment budget, including among other things an increase to the ROT tax reduction which currently allows households to claim back 30 percent of the cost of labour on maintenance work such as repairs, conversions and extensions. Under the new proposal, which is expected to cost the government 4.35 billion kronor, the ROT reduction will be increased temporarily to 50 percent from May 12th until the end of the year in order to kickstart the economy. The government and the Sweden Democrats have also agreed to put aside 500 million kronor for road maintenance. There will also be proposals concerning summer jobs for young people and reforms of professional higher education courses to offer more, shorter courses. Advertisement EU set to introduce retaliatory tariffs against US The EU is set to introduce tariffs against the US in April – or more correctly, it is set to reintroduce tariffs which were first put in place during President Donald Trump's first term in the White House. Trump has already introduced 25 percent tariffs on European steel and aluminium. The new EU tariffs will affect items such as motorcycles, orange juice and whisky with a total value of 8 billion euros. The EU is also preparing further tariffs of up to 18 billion euros, with the commission currently considering a 99-page-list of possible items chosen to target Trump-friendly parts of the US. In response, Trump has threatened a 200 percent tariff on European alcohol. Advertisement Deadline to change car to summer tyres April 15th is also the deadline for changing to summer tyres in Sweden, although winter tyres are no longer required from March 31st, so long as weather conditions are suitable. University hopefuls take Sweden's version of SATs Students across Sweden will take the Högskoleprovet, the country's version of SATs, on April 5th. While the test is not mandatory, a high grade gives additional support when applying for university courses. Sign-up for the test in April closed on January 14th. If you want to take the test but missed out this time, you can sign up for the next test on October 18th from August 12th-19th. Walpurgis Night Students, particularly in Lund and Uppsala, will indulge in all-day drinking and general revelry, and fires will be lit across Sweden, as the country celebrates Valborg, or Walpurgis Night, on April 30th. READ ALSO: What exactly is Swedish Valborg, and where are the best places to celebrate it? Advertisement King Carl XVI Gustaf celebrates his 79th birthday Sweden's king, Carl XVI Gustaf, turns 79 on April 30th. His birthday is usually celebrated by Sweden's armed forces, who entertain the public with a parade outside the Royal Palace in Stockholm. Are you organising an event in April? Let us know! Are you planning an Easter event, a pub night, a book club for English speakers, or anything else in April? Submit it to The Local's What's On guide and we'll share the best events with fellow readers.
