Latest Development: On October 14, a minority right-wing government composed of three parties - the Liberals, Moderates and Christian Democrats – was unveiled in Sweden. The bloc will be supported by the far-right Sweden Democrats (SD), won has the largest share of seats (73) among the right-wing faction in the Riksdag (Swedish parliament).

Fore

Key View

• We at Fitch Solutions believe that Sweden’s client loans will expand at a faster rate in 2022, but this is chiefly due to higher prices of big items as a result of multi-year high inflation.
• We expect that loan growth will accelerate to 9.0% y-o-y. We are forecasting inflation to average 6.8% in 2022, which means that real credit

Key View

• Sweden it is looking to implement a number of cost containment measures with a view reduce pharmaceutical expenditure in the country.
• Drugmakers will see reduced revenue and increased industry risk in the country, where drug prices are already low and subject to strong generic competition when they lose exclusivity.
• That said

Key View

• At Fitch Solutions, we have revised down our 2022 growth forecast for Sweden to 2.6% from 3.0% previously, as a result of the economic fallout from the Russia-Ukraine War.
• Elevated inflation is eroding households' real wage gains, weighing on consumer confidence and household spending in 2022.
• Risks to our growth outlook remain

Key View: A 16.2% annual decline in plug-in hybrid electric vehicle (PHEV) sales during the month of February 2022, to 5,495 units, bears out our view that a significant tightening of the bonus-malus rules proposed as part of the 2022 Budget would weigh on consumer demand for hybrids over the near term.

Key View

• At Fitch Solutions, we forecast above-trend growth of 3.0% in Sweden in 2022, and trend growth of 2.2% in 2023.
• Elevated inflation is eroding households’ real wage gains, weighing on consumer confidence and household spending in Q122.
• Risks to growth from Russia’s invasion of Ukraine are relatively small as trade only accounts for 4

Key View

• Sweden is experiencing solid growth in the deployment of EV charging infrastructure, however we note that current investment levels are failing to keep pace with EV uptake on the market.
• Our Autos team at Fitch Solutions expect Sweden's EV fleet to rise from 211,000 in 2020 to around 3.2mn in 2030, therefore we highlight the need for

Key View

• Sweden is set for a period of policy uncertainty for at least a few months, but likely longer, after Prime Minister Stefan Löfven resigned due to internal divisions, while the main opposition leader Ulf Kristersson will likely struggle to form an alternative coalition.
• We expect Löfven will eventually re-constitute a new centre-left

Key View:

• The Social Democrat-Green minority coalition government faces growing pressure from the Left party and rising opposition to the leadership of PM Stefan Löfven from within his own Social Democratic party.
• This will hinder the implementation of major policy initiatives, such as a planned reform of the Swedish labour market, which has