The National Institute of Economic Research (KI) has revised its forecast for Sweden's economic growth, citing ongoing uncertainty in U.S. trade policies. The Swedish export market is expected to grow slowly this year and next, with GDP growth projected at 0.7% in 2025. Unemployment is anticipated to be 8.7% this year, slightly lower than previous estimates.
Swedish Economy Slows Down: New Forecast by KI
Swedish Economy Slows Down: New Forecast by KI
The National Institute of Economic Research (KI) has lowered its forecast for Swedish economic growth. KI notes that uncertainty surrounding U.S. trade policies continues into the summer.
"Together with a subdued global economic climate, the tariffs mean that the Swedish export market will grow slowly this year and next," states the economic update released today.
KI now expects Sweden's GDP to grow by 0.7% in 2025, a reduction of 0.3 percentage points compared to the previous forecast, according to the report. For 2026, KI anticipates a growth of 2.6%.
Unemployment is expected to settle at 8.7% this year, which is 0.1 percentage points lower than the June forecast.
KI foresees a reform space in the upcoming budget of 34 billion SEK, the same assessment made in June.