Swedish Government Raises GDP Growth Forecast for 2026
Swedish government increases GDP growth forecast for 2026 to 3.0%, an improvement from 2.6%.
Key Points
- • GDP forecast for 2026 raised to 3.0% from 2.6%
- • Finance Minister Svantesson refers to a 'prolonged and sluggish' recession
- • Riksbank Governor addresses inflation and interest rates
- • Announcement made ahead of autumn budget negotiations.
On August 20, 2025, the Swedish government announced an updated GDP forecast, projecting a growth of 3.0% for 2026, an increase from the previously estimated 2.6%. Finance Minister Elisabeth Svantesson presented the updated figures, emphasizing the necessity of addressing economic challenges as Sweden faces a 'prolonged and sluggish' recession.
The revised outlook was disclosed during a press conference aimed at setting the stage for the upcoming autumn budget negotiations. Svantesson noted the ongoing economic difficulties, expressing cautious optimism about the anticipated recovery in 2026. The forecast is seen as indicative of potential improvements in economic conditions, despite the current landscape marked by inflation and uncertainty.
Additionally, Riksbank Governor Erik Thedéen discussed the factors influencing inflation and the decision to maintain the current interest rate, highlighting the ongoing assessments in the face of economic pressures.
This updated GDP projection reflects the Swedish government’s efforts to assess and adapt to changing economic realities, with the new forecast offering a more hopeful vision for the year ahead.