Swedish Prime Minister Ulf Kristersson Foresees Economic Recovery in 2026 with Planned Tax Cuts

In his 2025 Christmas address from Harpsund, Swedish Prime Minister Ulf Kristersson conveyed a message of optimism about the country's economic prospects, stating, "I believe that better times are on the way." He emphasized that Sweden is on the cusp of a promising year after enduring four difficult years marked by rising prices and stagnant wages.

Kristersson acknowledged that while the recovery of the Swedish economy is underway, it remains fragile and susceptible to global uncertainties that could disrupt progress. The Prime Minister highlighted positive developments, including inflation being defeated, an increase in real wages, and a significant decrease in mortgage rates.

Looking ahead, Kristersson announced government plans to implement tax cuts in the spring, specifically including a halving of the value-added tax (VAT) on food. These fiscal measures are designed to ease the cost of living and bolster the economic turnaround.

Overall, the Prime Minister’s speech balanced cautious optimism with acknowledgment of ongoing challenges, signaling confidence in Sweden’s economic recovery while recognizing the potential risks ahead. His statements reflect a commitment to continue supporting financial relief and growth through targeted policy actions.