Fin Min-Economic Outlook Is 'Bleak'

Wires reporting comments from Finance Minister Elisaebth Svantesson who spoke at a press conference regarding Sweden's economy. Says 'The outlook is bleak.' Says the gov't sees 2023 GDP at -0.8% compared to June forecast of -0.4%, while projecting inflation at 6.0% compared to June forecast of 5.8%. Claims that the 'worst inflation is behind us,' but that 'fighting inflation is the single most important task right now.'

• States that gov't sees real wages falling both in 2023 and 2024.
• Svantesson "The budget must be restrained and not drive inflation. High core inflation is at the root of why many are now struggling with their finances. If it does not come down, it will create problems in the social economy". States the budget will focus on 'welfare and defence'.
• Says that new investments worth SEK40bn (USD3.65bn) will be announced in the autumn budget, currently being negotiated by the governing parties.
• This will be the second budget presented by PM Ulf Kristersson's minority coalition following the post-election budget put forward at end-2022. The coalition, formed by Kristersson's centre-right Moderates, the social conservative Christian Democrats, classical liberal Liberals, will need to get the right-wing nationalist Sweden Democrats on board with any spending plans given that the party's vote is required for a majority.