”High wage agreements and low inflation mean that real wages this year are expected to grow with historically strong 3.1 percent”, write the LO economists in their new economic forecast.
In addition, the workers' trade union organization expects the Swedish Central Bank to lower the interest rate further this year, two more times. On top of that, the government is driving an expansive financial policy.
But it does not help, households are more depressed than in a long time and are holding tightly to their wallets. Most pessimistic about the economy are the households with the worst incomes, show the National Institute of Economic Research's measurements that LO refers to.
”The gap can be explained by the fact that high-income earners' incomes were significantly improved by the lowered interest rate during the year 2024. At the same time, low-income earners, who often live in rental apartments, received significant rent increases”, write the LO economists.
Thus, the broad consumption in society is expected to be relatively weak and LO sees a slow recovery from the low economic cycle. ”The high unemployment” will decrease first next year, predict the union's economists.
In order to strengthen the weaker households, they demand increased child allowance and investments in vocational training.
