Sweden Plans Family-Focused Budget to Drive Economic Recovery

The Swedish government is forecasting a stronger economy next year, with GDP expected to grow by 3%. Finance Minister Elisabeth Svantesson announced that an expansive budget will prioritize support for families and working households to accelerate recovery from the prolonged recession.
Svantesson emphasized that restraint would be damaging in the current climate. Instead, the government aims to boost consumption and provide financial relief for households, while earlier discussions on corporate tax cuts and energy tax reductions remain secondary. “Hardworking people should see that it’s their turn now,” she said, underlining the focus on families and individuals.
Household spending has remained weak, a key factor slowing the recovery. External pressures, including international trade tensions and tariffs, have added to uncertainty. Still, the Ministry of Finance expects the economy to strengthen by late this year and into 2026, with unemployment forecasted to edge down from 8.7% to 8.3%.
The autumn budget, set for release on September 22, will be negotiated among the Tidö parties. Talks are expected to be tough, but Svantesson insists the focus will remain on strengthening households and reducing unemployment while avoiding restrictive measures that could stall growth.