On Tuesday morning, Swedbank presented its latest economic report.
And at the same time as rising prices put pressure on household finances, companies' willingness to invest decreases.
- We have a hard and cold economic winter ahead of us, says Swedbank's chief economist Mattias Persson.
Rising interest rates, high inflation and energy prices weigh on development, while global growth is written down.
The Riksbank is expected to raise it to 3 percent
Swedbank's economists predict that the Riksbank will raise the interest rate sharply from today's 1.75 percent to 3 percent in February next year.
Something that would mean substantially higher interest costs for everyone with large mortgages.
The central bank expects that household consumption will fall when their purchasing power falls due to inflation and that growth measured as GDP will fall by more than one percent next year.
Risk of total shutdown
The economic development for households is the worst since the 1990s, according to Swedbank's economists and chief economist Mattias Persson sees a risk of "a complete stop in consumption" when households are now expected to hold tighter in their wallets.
- Households will hold tight to their wallets when purchasing power is impaired by high inflation and rising interest expenses.
The labor market still shows resilience, but the situation is expected to worsen when employment-intensive industries such as retail and construction are affected, says Swedbank's chief economist Mattias Persson.
Hear Swedbank's chief economist Mattias Persson about the economic situation in the video player above.