2025-09-24
The Swedish Economy Report September
The Swedish Economy Report September
Household consumption has increased for four consecutive quarters, and households’ percep-tion of the economy continued to improve during the summer. Household spending will be an important driver of the continued recovery. This is according to the latest forecast in our re-port The Swedish Economy.
GDP growth will be higher in the second half of this year than in the first. Growth will then rise further next year, driven mainly by households benefiting from the expansionary budget. Nevertheless, the economic downturn will not be over until 2027.
The labour market recovery will initially lag somewhat, which is a typical pattern during an economic recovery.
After peaking during the summer, inflation will fall back over the remainder of the year. Next year, inflation will be well below 2 per cent as a result of temporary cuts in VAT on food and the tax on electricity. However, this temporary low inflation will not prompt any further interest rate reductions.
Extensive debt-financed defence spending will result in negative general government net lending for many years to come.
