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Sweden Cuts 2026 GDP Growth Forecast on Geopolitical Concern

Pedestrians on a crossing near the Central Railway Station in Stockholm.

Photographer: Erika Gerdemark/Bloomberg

Sweden’s economic rebound will likely be slower this year than expected earlier as the war in the Middle East makes households more wary, according to a government forecast.

The finance ministry expects economic expansion of 2.8% this year — still the fastest pace in five years — up from 1.5% last year, Finance Minister Elisabeth Svantesson told a news briefing on Wednesday. Its December forecast was for 3% growth this year.