Research Briefing | Apr 21, 2021

Sweden | Country Economic Forecast April

Why big fiscal deficits and low inflation can coexi (35)

Sweden’s economy looks increasingly resilient to the latest round of activity 
restrictions. Despite stricter lockdown measures and a slow vaccine roll-out, 
Swedish consumers are starting to spend and businesses are ramping up
production. We now expect GDP to have risen in Q1, rather than contracting,
before a sharp acceleration in activity over the summer as vaccines become
widespread.

What you will learn:

  • Real household spending was up 2%, and we now see consumption rising.
  • Despite signs of firming demand, the jobs recovery is advancing more slowly.
  • Low inflation is set to boost real spending power.

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