Hopes are now being raised from several quarters that the Swedish economy is about to pick up again. The Minister of Finance is on the same track and is relying, among other things, on the recently published GDP indicator from Statistics Sweden (SCB) and surveys that show a better mood among both companies and households.
Swedish households have a more positive attitude and faith in the future of the Swedish economy. It's not that it's extremely strong, but you can see the light at the end of the tunnel, says Svantesson at a press conference.
Take off
Increased consumption is now what is needed to further boost the economy and Swedish companies. During the recession and with everything from the pandemic to the outbreak of the Ukraine war with its associated inflation shock, Swedish households have been cautious.
While the economy is now expected to grow, however, the Riksbank is clear that no further interest rate cuts are in the offing in the near future. Some economists are talking about an increase rather than a reduction in the policy rate as a future step.
Svantesson does not consider it likely that this would mean that households would not dare to open their wallets again. Instead, she highlights a difference in how Swedish households now view the uncertainty in the US and around President Trump's policies and their impact on the economy.
At the beginning when Donald Trump came on the scene, there were different messages every day. Many Swedes have their assets and future pensions on the stock market. At that time, people felt that "oh, there's danger ahead" and held back, she says.
Now I feel that it has become in some way the new normal with uncertainty in the US. That said, a lot can happen.
Stands up
The forecast that the government made in connection with the budget now stands, according to the Minister of Finance.
However, the risks of setbacks are "great", according to Svantesson, who points to uncertainty around tariffs and geopolitical conflicts. However, she does not see rising inflation as a consequence of the government's budget as likely:
"I'm not worried about inflation. It's still quite stable," she says.
