It is clear that the Swedish economy is going like a train, says Svantesson at a press conference.
Households dare to spend, and Swedish companies in many industries are also doing very well, she says. Sweden thus stands out from other EU countries.
However, the growth forecast for next year has been lowered to 2.3 percent from the previous 2.5 percent.
We are leaving the recession now, and next year we will have a cyclical balance, says Svantesson.
Reduced unemployment
The government sees a cautious recovery in the labor market. Unemployment is expected to continue to decline this year, reaching 7.7 percent next year, according to the forecast. This year, unemployment is estimated at 8.5 percent.
The inflation forecast is unchanged from the August forecast. The Ministry of Finance notes that inflation in Sweden remains low despite high energy prices.
"This can be explained, among other things, by low core inflation and the temporary tax cuts implemented by the government. Going forward, inflation is expected to approach the Swedish Central Bank's (Sweden’s central bank) inflation target of 2 percent," the ministry writes in a press release.
There is uncertainty
The finance minister also emphasizes that the forecast is surrounded by uncertainty. The conflict in the Middle East continues and is partly escalating.
We see no solution, and the longer it goes on, the greater the risk that energy prices will not come down to more normal levels but, on the contrary, will remain high, she says.
Other uncertainties include the ongoing war in Ukraine and AI's impact on the economy.
Domestic demand may also be negatively affected by rising interest rates.
For the next term of office, the assessment remains that the scope for reform is SEK 50 billion (about $4.8 billion).
