Sweden Ups Growth Forecast, Tames Inflation Expectations

The Swedish government has revised its economic forecast, raising GDP growth expectations to 1.4% in 2024 and 2.4% in 2025 while lowering headline inflation projections to 1.9% and 1.7% for the respective years. The finance ministry declared a victory in the fight against inflation.

The Swedish government on Monday raised its economic growth forecast for 2024, and lowered that for headline inflation.

"The fight against inflation has been won," the finance ministry said in a statement. The government now sees GDP growth of 1.4% this year and 2.4% in 2025. Its previous forecasts, published in March and reiterated in the spring budget in April, were for 0.7% and 2.5% growth, respectively.

It predicted headline inflation of 1.9% this year and 1.7% in 2025. Its previous forecasts were for 2.1% and 1.7%, respectively.