Sweden’s Finance Ministry Sees Recovery Slowed by Iran War

Sweden’s finance ministry expects the Nordic country’s economic growth to be hit harder by the Middle East war than seen previously, potentially denting the government’s reelection prospects four months out from a parliamentary vote.

In its updated outlook on Wednesday, the ministry reduced its projection for 2026 expansion to 2.3% from 2.8% seen as recently as April. It now forecasts growth of 2.7% next year versus 2.5% previously.