Europe's growth

EU lowers growth forecast after war and energy shock

The Iran war and the energy crisis are forcing the European Commission to sharply downgrade its growth forecasts. For the Union, the growth forecast is being lowered to 1.1 percent from 1.4 percent, while the inflation forecast is being raised from 2.1 percent to 3.1 percent in 2026.

Sweden's GDP is now expected to grow by 1.8 percent this year, compared to the previous 2.6 percent, while inflation is forecast to be 1.5 percent instead of 0.6 percent.

- The conflict in the Middle East has caused a major energy shock, says Economic Affairs Commissioner Valdis Dombrovskis in the new forecast.

He calls on the EU to reduce its dependence on imported fossil fuels.

Wallenberg wants to attract Germans to the stock market: "Cultural issue"

Europe must reduce its economic and political dependence on the US, according to the chairman of the Confederation of Swedish Enterprise Jacob Wallenberg. A key to growth is to develop the regional capital market - by getting more Europeans to choose the stock market over the mattress.

- It is a cultural and educational issue. How do you get a German to think that it is okay to invest in shares? It is not a given, but if we can do it, we will get more capital, Wallenberg tells TT.