Middle East crisis Swedish reactions

"Slows down the Swedish economy - may have some inflationary impact"

The effects of the war on the Swedish economy are so far quite small. Among the effects so far, it is noticeable that the decline in the electricity futures market does not look to be as severe as before the outbreak of the war. The impact on the price of gasoline is limited. This is what Riksbank Governor Erik Thedéen told TT after a hearing in the Riksdag.

Inevitably, rising oil and gas prices will still be felt by those who heat their houses or fill up their cars.

- It will have a dampening effect on the Swedish economy and it could have some effect on inflation, he says.

Swedish crisis preparedness
Riksbank: Keep 1,000 kronor in cash at home

It is time for Swedes to stretch their coffers at home with physical kronor and banknotes. This is what the Riksbank believes, which is tightening its recommendations for Swedish households.

Swedes are now recommended to have 1,000 kronor available at home, an amount that should cover a week's worth of essential goods and that can be varied depending on the number of family members.

In addition to cash, you should reduce your own vulnerability by making sure to have physical payment cards, preferably from several suppliers, and connecting Swish to your mobile phone.

The Riksbank also urges the public to use cash at regular intervals. 

Swedish growth
Economists: The tense situation can pressure Swedish growth

The Iran war could affect the Swedish economy in the long term if private individuals and companies become increasingly cautious and energy prices rise. This is what Robert Bergqvist, senior economist at SEB, tells Expressen.

- It is clear that it is stressing the Riksbank. It has not been very long since we had this inflation shock and many are afraid that this will push it back, he says.

Although forecasts point to Swedish inflation continuing to decline, Bergqvist does not want to draw too quick conclusions about the strength of Sweden's growth.

Annika Winsth, chief economist at Nordea, shares that conclusion. She does not believe in a cut or increase in the policy rate from the Riksbank in the near future. "All other things being equal, inflation is still below target," and then an increase is out of the question, she says.