Diminished growth prospects in wake of war but recovery expected to continue

Source: Government of Sweden

The Iran war and the closure of the Strait of Hormuz have driven up global energy prices and weakened growth prospects in Sweden and worldwide. The ongoing recovery of the Swedish economy is expected to continue, albeit at a slower pace than projected in the Spring Fiscal Policy Bill for 2026. Minister for Finance Elisabeth Svantesson has presented an updated forecast for economic development in Sweden.