The Swedish economy is facing a tough time, according to the latest issue of SCB’s statistical publication, “Sveriges ekonomi – statistiskt perspektiv” (Sweden’s Economy – Statistical Perspective), released on May 15, 2023.
The publication states that many economic indicators are pointing downwards, and the growth in the Swedish economy has been almost non-existent since the beginning of last year. Rising inflation and interest rates are negatively affecting household consumption, although the labor market is holding up so far.
Johannes Holmberg, an economist at SCB, said: “The growth in the Swedish economy has come to a halt. SCB’s business cycle clock shows that the business cycle for the GDP indicator has been on the decline since the beginning of 2022, and in the past few months, it has also fallen below the long-term trend.”
The publication’s business cycle clock indicates that the economic situation in Sweden looks bleak. In March 2023, ten of the thirteen monthly indicators in the clock were below their long-term trend, suggesting a weak economic situation.
One article in the publication examines the differences between the Consumer Price Index (KPI) and household consumption in the national accounts, which have different price developments. This is explained by the fact that household expenses for housing and financial services are calculated differently.
Despite the challenging situation, the publication provides a wealth of information for those seeking to understand the economic landscape in Sweden. The next issue of “Sveriges ekonomi – statistiskt perspektiv” is set to be released on June 14, 2023, at 8 a.m.