Finance Minister Elisabeth Svantesson (M) is not mincing words – she believes we are entering a new economic era. The International Monetary Fund (IMF) predicts a weaker global growth, necessitating a downward adjustment of expectations in Sweden.
“We must prepare for lower growth for a long time to come,” Svantesson announced at a press conference today.
The culprit behind this new era is none other than Trump and his tariffs. The trade war is creating direct consequences in the form of reduced global demand, as well as indirect effects through uncertainty and caution.
According to Svantesson, this situation does not resemble previous crises. During the financial crisis, the pandemic, and high inflation environments, the course of action was more clear-cut.
“Currently, the trade war is not as straightforward. We don’t know where the tariff levels will ultimately end up or what effects they will have in different countries,” Svantesson explained.
“Regardless of whether the tariffs are 10% or 20%, we in the EU have a lesson to learn, with structural reforms for increased growth.”
However, Svantesson also emphasizes that Sweden must improve conditions for higher growth.
“Regardless of what the EU does, we in Sweden must work more on growth-promoting measures to sustain growth in the long term,” she stated.
“It’s about making Sweden even more attractive for investments and increased trade, for example through alternative trade routes.”
Svantesson is referring to the EU’s trade agreement with India, which has been negotiated for several years.
Feeling confident, the Finance Minister asserts that she believes Sweden can navigate this new development and that Sweden’s finances are in good shape.
“Sweden is one of the few countries with a unique starting point. If more is needed in the future, we will do what is necessary to ensure that Swedish companies and jobs increase rather than decrease,” she concluded.