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Macro - Country Economic Forecasts - Sweden

Publisher Oxford Economics
Published Dec 15, 2025
Length 8 Pages
SKU # OFE20686042

Description

Sweden is finishing the year with broad-based positive growth momentum and we expect growth of 2.4% in 2026. Domestic demand will be the main driver, as positive real income gains, past monetary policy loosening, and supportive fiscal policy feed through. However, the external sector faces headwinds from US tariffs, Chinese competition, and policy uncertainty. We see the Riksbank keeping its policy rate on hold at 1.75% until a 25bps hike in Q3 2026.

Table of Contents

8 Pages
Sweden: Broad-based recovery to continue in 2026
Forecast overview
Recent developments
Short-term outlook
Key drivers of our short-term forecast
Economic risk
Economic risk evaluation
Risk warnings
What to watch out for
Exposure to key global risks
Long-term prospects
Alternative long-run scenarios
Background
Economic development
Structure of the economy
Balance of payments and structure of trade
Policy
Politics

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