Finance minister defends Sweden's economy as Riksbank flags potential interest rate hike
The Swedish government is sticking to its outlook for the country's economy, forecasting GDP growth of 2.3 percent this year – identical to its assessment at the beginning of May.
Unemployment is predicted to fall from 8.8 percent last year to 8.5 percent this year, which also matches previous forecasts.
According to Finance Minister Elisabeth Svantesson, of the conservative Moderates, the outlook appears brighter than it did just a few months ago, and inflation shouldn't pose a problem.
"Right now, we don't see this being an issue for the Swedish economy," she told a press conference. "Unemployment is, yes, too high, but it is now starting to move in the right direction."
Earlier on Wednesday, the Riksbank signalled that the probability of an interest rate hike this year has increased.
"That is a reasonable assessment because a high level of uncertainty persists. But even if everything were sorted out tomorrow [with the Iran conflict], it would still be weeks or months before things stabilise, and I have said all along that what is happening now will impact the Swedish economy for the rest of this year," Svantesson said.
According to the finance ministry's forecast, the public finances deficit will land at 2.5 percent of GPD this year. After that, the deficit will shrink, almost reaching a balanced budget within a few years.
"This forecast, and the development of the public finances, continues to give us very good buffers. We can handle tough, tough situations," said Svantesson.
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But the Social Democrats' economic policy spokesperson, Mikael Damberg, pointed out that the government lowered its GDP forecast for 2027 from 2.7 to 2.5 percent.
"The Tidö government has failed on the economy, and Svantesson has presented wishful thinking throughout the entire parliamentary term. It is going to be expensive for Swedish families," he said.
The Centre Party's Martin Ådahl said Sweden "needs a finance minister who recognises the crisis", branding the forecast over-optimistic.
"In one breath they talk about a high unemployment rate of 8.5 percent, and in the next, about a strong forecast. It doesn't add up," he said.
Swedish vocabulary: a breath – ett andetag
Summer of traffic chaos: Swedish drivers warned to expect record roadworks
Drivers heading out on Sweden's roads this summer should prepare for more closures than usual, with a record number of roadworks under way to give the country's neglected transport network a major facelift.
"There has been a very great need for a long time," Annika Canaki, head of the road systems department at the Swedish Transport Administration, told the TT newswire. "It involves everything from resurfacing and drainage work to reinforcing the road foundations and repairing bridges. There are many different types of investments."
The new transport plan, scheduled to span 12 years, gives the Transport Administration the resources to rebuild and improve roads from the ground up, after years of much-needed maintenance.
"Funding for road maintenance simply hasn't kept pace, and the road network has deteriorated," said Canaki, emphasising that it will ultimately lead to better accessibility and a safer road network.
"We would like road users to view each project as a step towards better roads. It will also create a more robust system that can better withstand heavy rain and other weather pressures."
Ahead of the Midsummer weekend, one of Sweden's busiest traffic weekends, the Transport Administration is advising motorists to plan their journeys and check the agency’s website to stay updated.
"Drive well-rested, take breaks, keep your distance and watch your speed. Drive with extra care when passing roadworks," said Canaki.
Swedish vocabulary: roadworks – vägarbeten
Sweden relaxes postal rules for PostNord following heavy delays
Swedish postal company PostNord has repeatedly faced heavy criticism for failing to deliver letters on time.
In response, the government is lowering the bar, significantly easing the requirements for mail delivery.
The previous rule stated that 95 percent of all domestic letters had to reach the recipient within two working days.
But under the new rules, only 85 percent of letters must be delivered within three working days, and 97 percent within five working days, writes the Swedish Post and Telecom Authority (PTS).
Swedish vocabulary: a letter – ett brev
ChatGPT creator OpenAI to launch its first Nordic office in Stockholm
OpenAI, the American company behind the tool ChatGPT, is set to open its first Nordic office in Stockholm during the second half of 2026.
The company announced the move in a press release.
According to OpenAI, Sweden is one of its fastest-growing markets in Europe. The country also has an attractive startup scene, it said, which boasts a high concentration of successful companies.
"Sweden has one of Europe's most advanced tech ecosystems and sharp engineering talent," the TT newswire quoted Emmanuel Marill, OpenAI's managing director for Europe, the Middle East and Africa, as saying in a statement.
Sweden's minister for international development cooperation and foreign trade, Benjamin Dousa, welcomed the news.
"The fact that OpenAI is opening an office in Stockholm is a testament to Sweden's position as one of the world's leading tech nations," he said.
Swedish vocabulary: to open – att öppna
Midsummer staple at risk as Sweden faces strawberry shortage
The worst thing that could possibly happen in Sweden in the run-up to Midsummer's Eve has happened: there's a shortage of strawberries.
This could lead to more expensive berries, according to reports by regional public radio broadcaster P4 Malmöhus and newspaper Bohusläningen.
At several farms in Skåne, Sweden's southernmost region, there is an imminent risk of a strawberry shortage. A number of growers told P4 Malmöhus that their crops currently consist of "unripe, pale berries".
In western Sweden, a cold spring with many frosty nights has also hampered the ripening process.
"Compared to Midsummer last year, we have about half as many ready-to-eat strawberries," grower Jakob Lundin told Bohusläningen.
He believes that there will be strawberries available in the region, but that prices will be higher.
The Göteborgs-Posten newspaper and other media outlets have suggested that a litre of strawberries could cost close to 100 kronor.
So if Swedes want strawberries for Midsummer, they are going to have to cough up.
Swedish vocabulary: a strawberry – en jordgubbe