Sweden | Growth seen at 4.1% in 2021 and 3.2% in 2022, with near-term risks rising

Although the outlook for Sweden is strong with all restrictions removed, there are downside risks related to persistent supply-chain bottlenecks in industry and surging energy prices.

What you will learn:

• Based on the main monthly indicators, the Swedish economy suffered a broad-based setback in August. Monthly GDP was down 3.8%, with private consumption down 1.1% and private sector output by 4.7%.
• The job recovery continues at a steady pace.
• Headline CPI inflation jumped to 2.5% y/y in September from 2.1% in August, in line with our forecast, driven by electricity prices that were up almost 25% y/y.