## Sweden: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Sweden

_IMF Staff Country Reports, March 16, 2023_

## Source details

**Canonical URL:** [Sweden: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Sweden](https://www.imf.org/en/publications/cr/issues/2023/03/16/sweden-2023-article-iv-consultation-press-release-staff-report-and-statement-by-the-530937)

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## Bibliographic details
- Published: March 16, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400237478.002

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### Overview
- Sweden experienced a strong post-pandemic rebound in 2021–22 but is potentially heading into a recession.
- The fiscal stance is slightly contractionary in 2023, which is appropriately supportive of monetary policy.
- The rapid and decisive monetary policy response targeted at reigning in record high inflation is well justified.
- Concrete progress in structural reforms is needed to address long-standing shortcomings and to fulfill Sweden’s ambitious climate agenda.

### Macroeconomic outlook and inflation
- Strong recovery continued well into 2022 following the pandemic.
- Risk of entering a recession is highlighted.
- Record high inflation is being actively targeted by rapid and decisive monetary tightening.

### Fiscal policy and policy stance
- Fiscal stance described as slightly contractionary in 2023.
- Recommendations on fiscal management:
  - Regularly review the fiscal stance in line with growth and inflation developments.
  - Allow automatic stabilizers to fully operate.
  - If needed, adjust discretional expenditures.

### Monetary policy
- Recent tightening and readiness to tighten further is welcomed given the priority to reduce inflation.
- Monetary policy tightening is portrayed as appropriately supportive of the inflation objective.

### Structural reforms and long-term priorities
- Areas identified for reform:
  - Labor market
  - Housing market
  - Educational gaps
  - Employment of the foreign-born
  - Bankruptcy framework
- Fulfilling Sweden’s ambitious climate agenda will require substantial effort and funding.

### Subjects and keywords highlighted in the report
- Subjects: Economic and financial statistics, Financial institutions, Fiscal policy, Fiscal stance, Government finance statistics, Housing prices, Inflation, International organization, Monetary policy, Mortgages, Prices.
- Keywords include: Baltics, CPIF inflation, Europe, Fiscal stance, Global, Government finance statistics, HICP inflation, Housing prices, Inflation, inflation development, liability positions vis-à-vis nonresident, money market rate, Mortgages.

*International Monetary Fund. Sweden: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Sweden*

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_Source: https://www.imf.org/en/publications/cr/issues/2023/03/16/sweden-2023-article-iv-consultation-press-release-staff-report-and-statement-by-the-530937_