Economic policy

On 17 May, Prime Minister Ulf Kristersson received Prime Minister of India Narendra Modi in Gothenburg. During the visit, the leaders held bilateral meetings and participated in discussions with European business leaders on innovation, climate and trade. HRH Crown Princess Victoria, Minister for Foreign Affairs Maria Malmer Stenergard, and India’s Minister for External Affairs Subrahmanyam Jaishankar also participated in the programme.

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.

Germany is Sweden’s most important trading partner, and the world’s fourth-largest economy. On Wednesday 6 May, Prime Minister Ulf Kristersson received Germany’s Federal President Frank-Walter Steinmeier in Stockholm for a meeting on regional security policy, total defence and cooperation between Sweden and Germany.

On Wednesday 6 May, Prime Minister Ulf Kristersson is to receive Germany’s Federal President Frank-Walter Steinmeier for a bilateral meeting in Stockholm.

Today, the 2026 Spring Budget was presented to the Riksdag. In a trying and unpredictable international situation, Sweden stands strong, and the Swedish economy has begun to recover. The Government is continuing to build a stronger and more secure Sweden. The Spring Budget includes measures worth SEK 7.7 billion for 2026.

On 13 April, the Government presented its Spring Budget. In an uncertain international situation, Sweden continues to stand strong with an economy that is trending upward. The budget includes measures worth SEK 7.7 billion in 2026 and focuses on building a stronger and more secure Sweden.

This section presents the Government's economic and budgetary guidelines in the Spring Fiscal Policy Bill for 2026.

Prime Minister Ulf Kristersson received President of the European Parliament Roberta Metsola on Friday, 27 March. Together, the leaders visited Stockholm’s stock exchange, Nasdaq Stockholm, and discussed ways to strengthen the EU’s capital markets and competitiveness.

There is currently a great deal of uncertainty in the world, particularly due to the war in the Middle East and its consequences. Nevertheless, the Swedish economic recovery that began in 2025 is expected to continue in 2026. Minister for Finance Elisabeth Svantesson has presented a new economic forecast.

In this Communication, the Government sets out the fiscal policy framework. This Communication, which serves as a code of conduct for both the Government and the actors who review the fiscal policy, aims to set out the laws and other rules as well as established practice that make up the fiscal policy framework. The Communication is also intended to provide detail on certain parts of the framework and the Government’s application of it.

After a weak start to the year, activity in the Swedish economy has picked up and an economic recovery has begun. Domestic demand, strengthened by an expansionary fiscal policy, has driven the recovery and is expected to continue to do so next year. Minister for Finance Elisabeth Svantesson has presented a new forecast of economic developments.

The Swedish labour market is reflecting the effects of a prolonged economic downturn and several structural challenges. To address the high level of unemployment, the Government is introducing a package of robust measures to get more people into work. The aim is to break the economic downturn by strengthening household finances, increasing incentives to work, creating more opportunities for education and supporting companies.

The strength of Sweden’s public finances is now being drawn upon to put more money in the pockets of hard-working people. This can inspire belief in the future and bring the economic downturn to an end. With the Government’s reforms, a family with two children will have an additional SEK 1 800 per month. The Budget includes reforms totalling almost SEK 80 billion, and is based on an agreement between the Government and the Sweden Democrats.

The Government presented the Budget Bill for 2026 to the Riksdag today. The strength of Sweden’s public finances is now being drawn upon to put more money in the pockets of hard-working people. This can inspire belief in the future and bring the economic downturn to an end. With the Government’s reforms, a family with two children will have an additional SEK 1 800 per month. The Budget includes reforms totalling almost SEK 80 billion, and is based on an agreement between the Government and the Sweden Democrats. 

Growth of the Swedish economy has been burdened by geopolitical uncertainty during the first half of 2025, and we are still in a period of recession. At the same time, recovery is expected to resume in the coming months and continue at a steady pace next year. Minister for Finance Elisabeth Svantesson has presented a new forecast on the economic outlook.

The recovery that began in the second half of 2024 has slowed, and the Swedish economy remains in protracted recession. This is largely due to increased geopolitical uncertainty. However, rising real wages and lower interest rates suggest that the recovery will gain momentum in the second half of 2025. Minister for Finance Elisabeth Svantesson has presented the latest economic forecast from the Ministry of Finance.

Today, the Government, together with the Social Democratic Party, the Sweden Democrats, the Left Party, the Centre Party and the Green Party, presents an agreement to enable a historic expansion of Sweden’s defence to meet NATO’s new defence spending targets – expected to be 3.5 per cent of GDP – and that this expansion will be achieved rapidly through temporary financing via loans. This is a historic show of strength. If NATO were to agree on an additional target of 1.5 per cent of GDP for broader defence and security-related investments, the parties are in agreement that Sweden should also meet that target.

Russia’s full-scale war against Ukraine continues with unabated intensity, bringing serious consequences for civilians. Russian propaganda continues to spread the false narrative of a strong and resilient economy. On behalf of the Swedish Government, the Stockholm Institute of Transition Economics (SITE) drafted a report in late 2024 concerning economic developments in Russia. The report highlighted the unreliability of Russian statistics, and that the country’s economy is not performing as well as its statistics suggest. SITE has now published a follow-up report, and Minister for Finance Elisabeth Svantesson has met with Director of SITE Torbjörn Becker to discuss the Russian economy and the report’s conclusions.

The Spring Budget, or the 2025 Spring Fiscal Policy Bill and 2025 Spring Amending Budget, is being presented today. In the Spring Budget, which is based on an agreement between the Government and the Sweden Democrats, the Government is using the strength of the Swedish economy to strengthen economic development and counteract the negative effects of the prevailing economic uncertainty.