Sweden:2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Sweden

Author: International Monetary Fund. European Dept.

Sweden: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Sweden

Volume/Issue: Volume 2023 Issue 111

Publication date: March 2023

ISBN: 9798400237478

$20.00

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Topics covered in this book

This title contains information about the following subjects. Click on a subject if you would like to see other titles with the same subjects.

Inflation , Economics- Macroeconomics , Money and Monetary Policy , Business and Economics - Statistics , International - Economics , liability positions vis-à-vis nonresident , money market rate , CPIF inflation , HICP inflation , inflation development , Inflation , Housing prices , Mortgages , Fiscal stance , Government finance statistics , Global , Baltics , Europe

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Summary

Sweden experienced a strong post-pandemic rebound in 2021–22 but is potentially heading into a recession. Global headwinds started to steadily put breaks on consumption and business confidence in the third quarter of 2022, as external demand weakened, and higher inflation and interest rates are increasing the burden on households and firms. A slightly negative GDP growth and a moderate decline in inflation are expected in 2023. The recovery will be gradual over the medium term, and inflation is expected to decelerate towards its 2 percent target, but the uncertainty surrounding this outlook is high.