Sweden’s growth this year lowered due to historical revisions
We have lowered Sweden’s growth outlook for this year to 2.1% from 2.6% last month, a move largely driven by revisions to the past few quarters. The overall picture, though, is little changed, with inflation eroding real incomes and private consumption, while prompting accelerated monetary policy tightening.
What you will learn:
- The economy got off to a weak start in 2022 due to the Omicron Covid variant.
- On the production side, manufacturing and construction were down 0.4% and 1.4% m/m, respectively, while services were up by 1.3% m/m, reflecting post-Covid tailwinds.
- The labour market is the one bright spot, with record vacancies, low layoffs, and upward pressure on wages.