Swedish Government Raises GDP Growth Forecast for 2026

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.