Swedish Finance Minister: Economy not in crisis despite recession

Swedish Finance Minister Elisabeth Svantesson maintains that the Swedish economy is not in crisis, despite acknowledging a deep and prolonged economic downturn. She defended the government's temporary stimulus measures, such as reduced food and fuel taxes, as necessary to navigate the current economic climate.

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My task is to ensure that we get out of this downturn as quickly as possible.

"My task is to ensure that we get out of this downturn as quickly as possible," Svantesson said. The government has introduced measures including halving the food VAT, lowering fuel taxes, and reducing public transport fares. Svantesson acknowledged that removing these temporary supports would increase costs for citizens but stressed their importance in fostering economic activity and household confidence.

Svantesson justified the temporary measures by pointing to global economic instability, particularly the risks stemming from the Middle East conflict potentially impacting the world economy. While Sweden is less dependent on oil and gas, she noted the risk of cost pressures from rising transport and energy prices elsewhere.

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My point is that Sweden is in a long and drawn-out recession. But the Swedish economy is not in crisis in that way. Then people who are having a tough time can experience a crisis in their own economy.

Despite criticism from bodies like the Fiscal Policy Council and the National Institute of Economic Research, Svantesson differentiated between a prolonged downturn and a full-blown crisis. She acknowledged that individuals facing economic hardship might perceive their personal situations as a crisis. Looking ahead, she indicated a continued focus on tax cuts for wage earners and research and development, without ruling out a reduction in corporate taxes if her party remains in power after the upcoming election.

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My task is to do everything I can, but it depends on what happens. What we are doing now is about making households believe in the future and dare to invest and consume.