Swedish government faces economic test ahead of election

The Swedish government’s hopes for an economic recovery before the next election have been dashed, according to an analysis by public broadcaster SVT. If voter pessimism grows, it could threaten the ruling coalition’s chances of staying in power—but high fuel prices may play to the opposition’s advantage.

Inrikespolitisk commentator Elisabeth Marmorstein writes that Finance Minister Elisabeth Svantesson’s optimism about a pre-election turnaround has been undermined by persistent economic challenges. Should public sentiment worsen, it risks complicating the government’s re-election bid.

However, Marmorstein notes that if the campaign focuses on fuel prices—a key issue for many voters—the opposition Tidö parties could gain an upper hand.

The analysis follows recent downward revisions to Sweden’s growth forecasts and a sharp drop in inflation in April.