The war in Ukraine, soaring electricity prices, increased interest rates and high inflation mean that there is great uncertainty for the Swedish economy ahead of next year.

The government expects a slowdown in global growth and predicts that Sweden is heading into a recession.

- How deep and prolonged it will be depends on the policy pursued and the development in the outside world, says Finance Minister Mikael Damberg (S) at a press conference at Harpsund in Sörmland.

Damberg describes it as Sweden being in a war economy where the increased global uncertainty also affects the Swedish economy and Swedish households.

- Everyone must help each other, companies should not take the opportunity to raise prices for no reason in order to take advantage of pressured households, says Damberg.

30 billion for new reforms

The government met on Thursday in Harpsund to discuss next year's budget.

Damberg gave an account of Sweden's economic situation and what room for reform there is in next year's budget, which will be presented in September. 

The reform space, i.e. the money available for investments after the surplus target is achieved, is approximately SEK 30 billion for 2023. 

- It is not so much if you listen to the parties' lofty election promises.

So it is important that the parties realize that we are moving towards tougher times and that it is important to prioritize what is most important, says Damberg to SVT.

Can influence the election campaign

Damberg himself noted when he went through the world situation and the forecast for the Swedish economy at the press conference that it is not cheerful reading.

Damberg tells SVT that the tough message can lead to the election campaign becoming more restrained.

According to the government, priorities and "a responsible fiscal policy" will be required to manage the economic situation.

- It cannot be that you promise anything.

There is a reform space of SEK 30 billion for the whole of next year.

Only the moderates' promised tax cuts are more than that, and then we haven't even discussed the financing of defence.