The Swedish government has revised its economic growth forecast for 2025, cutting it in half compared to previous estimates. This adjustment comes as a result of a weaker outlook for domestic consumption and growing risks associated with U.S. trade policies. Over the past few months, expectations of a robust recovery in Sweden, the largest Nordic economy, have diminished. This downturn is largely attributed to ongoing geopolitical uncertainties, which have also influenced the Riksbank’s recent decision to ease monetary policy.
— news from Bloomberg.com
— News Original —
Sweden Cuts 2025 Growth Forecast in Half as Recovery Stalls
Sweden’s government lowered this year’s economic growth forecast for the second time in three months, citing a weaker outlook for consumption and risks linked to U.S. trade policy. In the past months, hopes of a clearer rebound in the largest Nordic economy from a soft patch in the last three years have fizzled out, largely due to geopolitical concerns, prompting the Riksbank to return to monetary easing last week.