Swedish economy to see worst downturn in EU: 2023 forecast

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Swedish economy to see worst downturn in EU: 2023 forecast
Sweden is predicted to have the lowest growth in the EU this year, although inflation is also expected to go down. Photo: Magnus Hjalmarson Neideman/SvD/TT

Sweden's economy is the worst in the EU and is predicted to shrink in 2023 alongside decreasing inflation, according to new winter predictions from the EU Commission.


Fresh statistics from Paolo Gentiloni, the EU Commissioner for Economy, in the commission's Winter 2023 Interim Economic Forecast predict that Sweden's growth this year will fare worst of all EU countries, as the only country in the union expected to see shrinkage rather than growth.

The Commission predicts a negative growth of -0.8 percent this year, with positive growth, 1.2 percent, predicted for 2024. At the same time, it expects Swedish inflation to decrease from 6.3 percent this year to 1.8 percent in 2024.

In general across the EU, the commission has a slightly more positive prediction now than in its last report in autumn, although challenges remain. It now predicts a growth of 0.8 in the EU as a while, with a 0.9 percent growth in the Eurozone. In autumn, predictions for both these figures for 2023 stood at 0.3 percent.

"We're slightly more optimistic about the possibility of growth and an expected decrease in inflation this year," Executive Vice-President for economic issues Valdis Dombrovskis said in a press statement. "However, we're still facing many challenges."


Ireland is predicted to have the highest EU growth prediction for 2023, at 4.9 percent, followed by Malta at 3.1. At the other end of the scale, just above Sweden, are Estonia, Latvia, the Czech Republic and Denmark, all predicted to see 0.1 percent growth this year.

Regarding inflation, Hungary has the highest prediction at 16.4 percent, with Poland following behind at 11.7 percent, according to EU Commission figures.


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