Swedish think tanks have significantly lowered the country's economic growth expectations

Xinhua News Agency, Stockholm, June 21 (Reporter Fu Yiming) The Swedish National Institute of Economic Research issued a report on the 21st that due to the continued soaring inflation, the agency has greatly reduced the expected economic growth rate of Sweden to 1.9%and 1.2%today and tomorrow. Essence

In March of this year, the think tank expects the Swedish economy to increase by 3.3%and 2.1%, respectively.

The latest report said that the expansion economic policies, global supply chain bottlenecks, and Ukraine crisis during the new crown epidemic have led to high global inflation. In addition, the continuous decline in asset prices and expectations for continuous interest rate hikes have also allowed Swedish families to be pessimistic about the prospects.

The report said that although sufficient order volume and relatively good profit status still viewed the economy optimistically, the decline in family purchasing power means that the future demand is weak, and the economic growth rate of Sweden has slowed significantly. The unemployment rate will remain at a high level for two years.

On the 14th of this month, data released by the Central Statistics Bureau of Sweden showed that the inflation rate in Sweden was 7.2%in May, a new high since December 1991. In addition, since May 4th, the Central Bank of Sweden has increased the benchmark interest rate from zero to 0.25%to curb inflation. The Swedish central bank said that it will gradually increase the benchmark interest rate to a slightly lower than 2%level in the next three years.

- END -