Sweden faces a possible recession in 2024, especially after the central bank ended its 18-month run of interest rate hikes. Swedish insolvencies spiked by 29% in 2023 — the highest since 1990’s — after the property bubble burst.
Credit rating firm UC said December saw a 23 percent year-on-year rise in bankruptcies, which could indicate deeper economic issues, especially against the backdrop of sustained high inflation and interest rates.
The slightly optimistic trend that we saw in the autumn, where bankruptcies seemed to stabilize, has now reversed, and the development has picked up speed again.
Sweden’s central bank has ended its 18-month run of interest rate hikes as the spetcre of recession looms in 2024. Goransson stressed that previously healthy firms now faced financial challenges.
Major sectors including construction, retail and the hospitality industry are seeing fewer new start-ups than at any time in the past decade.
But the number of bankruptcies has not yet level of the 1990’s recession because today’s market is more global than it was then, and the crisis has hit more broadly.
The Swedish government expects the economic upturn to be less robust in the upcoming year than earlier predicted.
Swedish Finance Minister Elisabeth Svantesson highlighted that public spending is expected to be conservative in early 2024 and forecast that unemployment would continue to rise.
Despite some positive signs, 2024 will be a tough year in many ways… We expect more bankruptcies and layoffs next year. Demand for labor will be weaker than we previously expected.
Sputnik / ABC Flash Point News 2024.
Most EU countries, including the USA are bankrupt, invading other nations to confiscate their resources in order to stay adrift?
True enough PT but USA arrogance to impose hardship on the poor with high fuel- food prices just to try and keep world dominance and attack Russia because it wont bow down to the White House is a major cause .
Its achieved its aim by eliminating a competitor- Germany now in a recession but that’s what happens to friends of America .
Retrieving “friends” of the USA and Israel have shown to expect support from BRICS?