Riksbank Governor and Regional Economies Signal Sweden's Economic Strengthening in October 2025
Sweden shows early signs of economic recovery in 2025, with positive growth signals from Riksbank and several regions reporting budget surpluses.
- • Swedish GDP growth was lower than expected in early 2025 but is now improving, according to Riksbank governor Erik Thedéen.
- • Household consumption in Sweden has increased by 8% year-on-year, especially for non-durable goods.
- • Ten Swedish regions are projected to achieve budget surpluses in 2025, including Stockholm and Västra Götaland.
- • Regions have implemented savings measures totaling over 13 billion SEK to improve their fiscal positions.
Key details
Sweden is showing signs of economic recovery and strength as of October 2025, highlighted by recent statements from Riksbank governor Erik Thedéen and improved fiscal outlooks in several regional economies. Despite slower-than-expected GDP growth during the first half of 2025, Thedéen reported optimistic indicators for stronger growth moving forward.
During a parliamentary finance committee hearing, Riksbank governor Erik Thedéen noted that while Swedish GDP growth underperformed earlier forecasts, there are emerging signs that the downturn may be reversing. He pointed out an 8% annual increase in household consumption, particularly in non-durable goods, as a key sign of strengthening economic activity. This improvement in consumer spending marked a shift towards a more optimistic economic outlook for Sweden.
Supporting this national perspective are positive developments in Sweden's regions. A recent survey by Ekot found that after years of budget cuts, ten regions are projected to finish 2025 with budget surpluses. Stockholm leads with an expected surplus of 1.9 billion SEK, followed closely by Västra Götaland with 1.7 billion SEK. Other regions are also reporting positive fiscal results, although smaller in scale. These regions have achieved this turnaround through substantial savings measures, including cuts to temporary staff and administrative personnel, leading to total savings exceeding 13 billion SEK.
This combined evidence from national monetary authorities and regional budgets points to enhancing economic resilience and recovery across Sweden. While challenges remain, the increased household consumption alongside balanced or surplus regional budgets mark a potential inflection point toward stronger economic growth.
Looking ahead, Thedéen’s remarks and regional fiscal data suggest a cautiously optimistic trajectory for Sweden’s economy as the year progresses. Continued monitoring of growth indicators and regional fiscal management will be key to confirming this positive trend.