Latest news with #SwedenEconomy
Reuters
24-06-2025
- Business
- Reuters
Sweden cuts 2025 growth forecast again due to global uncertainty
STOCKHOLM, June 24 (Reuters) - The Swedish government lowered its GDP growth forecast for 2025 on Tuesday to 0.9%, while raising the outlook for 2026 to 2.6%. Its latest forecast, given in May, was for growth of 1.8% this year and 2.3% in 2026. "The recovery that began in the second half of 2024 has stalled, and the Swedish economy is in a prolonged downturn, largely due to increased uncertainty in the world," the Finance Ministry said in a statement. "However, rising real wages and lower interest rates suggest that the recovery will gain momentum in the second half of 2025," it added. In May, Svantesson cut the GDP forecast for 2025 from 2.1% blaming U.S. President Donald Trump's on-again, off-again tariffs for increasing geopolitical uncertainty and leading businesses and households to hold off on new spending. The central bank has a forecast for growth this year of 1.2% while leading think-tank NIER's latest outlook sees GDP expanding 0.9%. Earlier this month, the central bank cut its key interest rate to 2.00% from 2.25% and said that, with price pressures weak, it may ease further before the end of the year to boost sluggish growth. Gross domestic product shrank 0.2% in the three months to March 31 on a quarterly basis. In 2024, GDP growth was 1.0%.
Free Malaysia Today
19-06-2025
- Business
- Free Malaysia Today
Sweden's central bank cuts rate to boost economy
Riksbank cut its key rate by a quarter point to 2% and said another cut this year was possible. (LinkedIn pic) STOCKHOLM : Sweden's central bank today cut its key interest rate in an effort to boost a weak economy, as it cited risks linked to trade tensions and the escalating conflict in the Middle East. The bank cut its key rate by a quarter point to 2% and said another cut this year was possible. 'The economic recovery that began last year has lost momentum, and inflation is expected to be somewhat lower than in the previous forecast,' the Riksbank said in a statement. The Nordic country's economy contracted by 0.2% in the first quarter of the year, dragged down in part by a slowdown in household consumption. Swedish inflation fell to 0.2% year-on-year in May, according to Statistics Sweden. The inflation measure used by the Riksbank to guide monetary policy, CPIF, which is adjusted for interest rates, came in at 2.3% – close to the central bank's 2% target. 'The outlook for the economy and inflation is 'uncertain',' Riksbank said. 'There are substantial risks linked to trade policy and the geopolitical tensions, not least as a result of the escalating conflict in the Middle East, which could affect economic developments abroad,' it said. 'These risks and the questions about the strength of domestic demand mean that it is uncertain how quickly the Swedish economy will recover,' the bank added. The announcement came hours before a rate decision by the US Federal Reserve – which is expected to hold its own rate steady. The Riksbank's decision to cut its rate was widely expected by economists, and the central bank said 'the forecast for the policy rate entails some probability of another cut this year'. Economists at bank Nordea noted that the central bank 'is in no hurry to cut rates again'. 'In our view, the economic recovery will continue, reducing the need for additional rate cuts,' Nordea chief analyst Torbjorn Isaksson said in a note.
Bloomberg
17-06-2025
- Business
- Bloomberg
Sweden's Faltering Growth May Force Another Rate Cut
The Riksbank may be about to restart a cycle of interest-rate-cutting that officials had signaled to be over as recently as March. In a bid to revive Sweden's faltering economy, policymakers in Stockholm will probably announce a quarter-point reduction in their benchmark to 2% on Wednesday, according to 11 out of 14 economists surveyed by Bloomberg. Investors will scrutinize the decision for any hint of further moves to come.
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.
