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16 Mar 2023
IMF Executive Board Concludes 2023 Article IV Consultation with Sweden
Following the pandemic, Sweden’s economy experienced a strong recovery, which continued well into 2022. GDP growth is projected at around 3 percent in 2022. The labor market improved, while general labor shortages persisted. A higher budget surplus is expected for 2022. Inflationary pressures intensified in 2022 despite several monetary policy actions. Strong borrowing by households and real estate firms fueled price and value growth, with both house prices and total household debt in relation to income peaking in end-2021. House prices started to decline in the second half of 2022. Commercial real estate (CRE) companies took on more debt, with the sector becoming highly concentrated.
