HELSINKI, Aug. 6 (Xinhua) -- The Swedish National Institute of Economic Research (NIER) on Wednesday revised its 2025 growth forecast for the Swedish economy downward, from 0.9 percent to 0.7 percent.
In a statement, NIER cited continued global economic weakness and uncertainty surrounding U.S. trade policy as key factors dampening Sweden's economic prospects.
Alongside the subdued global cycle, U.S. tariffs are expected to constrain Swedish export growth this year and next, the agency noted.
NIER emphasized the increasing importance of domestic demand in driving Sweden's economic recovery. According to Statistics Sweden, the country's GDP grew by a modest 0.1 percent in the second quarter of 2025 compared to the previous quarter, largely due to restrained household spending.
Looking ahead, NIER expects lower interest rates and rising real incomes to gradually boost private consumption and support an economic rebound later in the year.
The Swedish central bank, Riksbank, lowered its policy rate to 3 percent in June and is projected to cut it further to 1.75 percent in September, NIER said during a press conference.
NIER operates under the Ministry of Finance and is responsible for providing independent economic analyses and forecasts for both the Swedish and global economies.
