Sweden Set to See EU’s Only 2023 Contraction as Housing Weighs
- The European Union published a new set of forecasts on Monday
- All other EU countries are projected to grow in full-year 2023
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Sweden will probably be the only economy in the European Union to contract this year as high inflation erodes private spending and a housing slump hits construction, European Commission said.
The largest Nordic nation faces a 0.8% decline in its gross domestic product in 2023, followed by expansion of 1.2% next year, according to new projections by the Brussels-based executive of the trading bloc, published on Monday. While the commission had in November also forecast a contraction for Germany, it now sees the EU’s biggest economy growing 0.2% this year.