SwedenLivingWorld world_2_fill WorldBusiness BusinessSports sports-soccer SportsEntertainmentEntertain

Low economic growth in Sweden despite lower inflation

Have you noticed that the price increase in grocery stores has slowed down? There has been a period of strong inflation that has been significantly dampened.

» Updated: 09 September 2024, 22:27

» Published: 22 August 2024

Low economic growth in Sweden despite lower inflation
Photo: Envato

The Swedish Statistics Office (SCB) has released statistics showing that Sweden's economy is stagnant and the economic situation is very weak.

Economic activity in June 2024 is at the same level as the corresponding period in 2022. The SCB's economic indicator shows that Sweden is slipping further into a low-growth economy.

The SCB has something called the "economic clock" with 12 measurement points, and currently, 10 of these points are lower in June compared to the long-term trend.

The inflation rate according to the Consumer Price Index (CPI) is 2.6% in July 2024, which is the same as in June. According to Mikael Nordin, a price statistician at the SCB, it is mainly increased housing costs that have affected inflation.

What does a low-growth economy mean?

Demand for goods and services decreases. Companies may lay off employees and invest less due to lower revenues. This, in turn, affects households, as unemployment may increase. It becomes a negative chain reaction.

How long does a low-growth economy last?

It's difficult to say, as much is controlled by the government's economic policy and the global economy. For example, the 1990s crisis in Sweden lasted for several years, while the low-growth economy due to the pandemic lasted for a short time.

What does lower inflation mean?

It means that the price increase of products slows down, and it becomes cheaper for households to consume products. It simply becomes cheaper for you to buy goods, for example, in your grocery store.

Tips during a low-growth economy

  • Review your personal finances and save where possible
  • Continue to save on your account, reduce expenses
  • Consume thoughtfully
  • Plan for the worst-case scenario and create a buffer

Sources: European Central Bank, SCB, Handelsbanken

Michelle KimM
By Michelle KimEditor-in-chief

More news

Good jobs with good pay that don't require long education

Good jobs with good pay that don't require long education

Why Are Swedish Houses Red?

Why Are Swedish Houses Red?

Black Friday & Week - How Do You Find The Best Deals

Black Friday & Week - How Do You Find The Best Deals

What is Swedish Filmjölk?

What is Swedish Filmjölk?

7 Difficult Swedish Idioms And Expressions

7 Difficult Swedish Idioms And Expressions

How To Survive Swedish Winter - 4 Tips From A Swedish Expert

How To Survive Swedish Winter - 4 Tips From A Swedish Expert

Importance of Generation Z in Sweden and Globally

Importance of Generation Z in Sweden and Globally

What tax rules apply to Bitcoin and other cryptocurrencies in Sweden?

What tax rules apply to Bitcoin and other cryptocurrencies in Sweden?

Julkalendern - The Yearly Swedish Christmas TV Show

Julkalendern - The Yearly Swedish Christmas TV Show

What to do if your bicycle is stolen in Sweden

What to do if your bicycle is stolen in Sweden

AI Music Tops the Viral 50 Chart in Sweden

AI Music Tops the Viral 50 Chart in Sweden

Young people and energy drink consumption in Sweden

Young people and energy drink consumption in Sweden

Have you eaten at Sweden's best hamburger restaurant?

Have you eaten at Sweden's best hamburger restaurant?

Sweden to America - The Great Emigration of the 19th Century

Sweden to America - The Great Emigration of the 19th Century

Major Banks Lower Mortgage Rates Following The Swedish Central Bank's Decision

Major Banks Lower Mortgage Rates Following The Swedish Central Bank's Decision

The Most Popular Cat Breeds In Sweden

The Most Popular Cat Breeds In Sweden

Korean Food Coming To Sweden

Korean Food Coming To Sweden

Prominent Swedes comment on Trump's victory in the US election

Prominent Swedes comment on Trump's victory in the US election

Start Your Classic Swedish Christmas Decorations

Start Your Classic Swedish Christmas Decorations

Why the U.S. Election Matters for Sweden

Why the U.S. Election Matters for Sweden