IMF Sees Downside Risks to
Photo: Pontus Lundahl/TT

IMF Sees Downside Risks to Swedish Growth, Warns Inflation Could Rise

The International Monetary Fund (IMF) sees downside risks to growth and a risk of higher inflation in Sweden, according to a so-called Article IV report on the country's economy. Interest rates may need to be raised, according to the IMF.

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Disruptions in energy supply and high energy prices are cited as uncertainty factors, but Sweden has a strong starting position, according to a press release from the IMF.

"Credible economic policy frameworks, good buffers, strong institutions, and a solid history of implemented policies built over decades provide a stable foundation," the IMF writes.

"Interest rates will need to be raised as inflation rises and the economy strengthens, or if upside risks to inflation materialize. Low inflation provides a favourable starting point," the IMF adds.

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AuthorTT News AgencyEnglish edition by Sweden Herald, adapted for our readers
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