Sweden: 2026 Article IV Consultation-Press Release; and Staff Report

Sweden’s economic recovery momentum is ongoing, supported by accommodative policies, despite the headwinds from the war in the Middle East. While a framework agreement to end hostilities was announced on June 15, uncertainty remains about how soon energy supply disruptions will be resolved, how long energy prices will remain elevated relative to pre-war levels, and how their impact will transmit through the economy. Additionally, slower productivity growth and an aging population would weigh on medium-term growth. National elections are scheduled in September. The expectation is of broad policy continuity over the medium term.