It has been a few years of tough financial challenges for Swedish households. More expensive food, electricity bills that have skyrocketed and mortgage interest rates that have reached sky-high levels have meant that many Swedes have been forced to turn over their pennies to make ends meet.
But in 2025, the economic development is predicted to offer some relief.
– It looks brighter. Swedish households will be better off next year, which concretely means more money left in the wallet after all bills are paid. It is gratifying as the last few years have been difficult. As the private economy strengthens, it may be good to top up your financial buffer, and then strengthen your long-term savings, says Stefan Westerbergprivate economist at Länsförsäkringar, in a press release.
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They get SEK 4,600 more in their wallets in 2025
In a new analysis by Länsförsäkringar, which looked at the total costs of Swedish families with children between 2021 and 2025, it appears that the monthly expenses for this group have increased by a total of SEK 10,000.
In 2025, these costs will decrease by SEK 2,100, to a total of SEK 37,300, compared to SEK 39,400 in 2024. According to the company, this is mainly due to the fact that the variable mortgage interest rates are not at the same high levels and that the price of both electricity and fuel are falling.
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With the government’s tax cuts and an expectation that real wages will increase by three percent, two adults in a family with children receive 1,750 and 750 kroner respectively more per month. This is if they are assumed to have a monthly salary that is at the same level as the national average: NOK 43,100.
This means that in total – due to lower costs, tax cuts and real wage increases – they get around SEK 4,600 more in their wallets per month.
Large regional differences
However, there are regional differences as a result of the fact that there are four different electricity price ranges and that the prices of housing, and thus also mortgages and interest costs, vary.
The costs have been the greatest for families with children in Stockholm. For them, costs are reduced by around SEK 4,100 per month.
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Families with children in Västernorrland have experienced the least cost increases. Their costs will decrease by SEK 900 per month in 2025.
– The biggest wallet effect comes through the lower interest rates, and they have a greater impact in metropolitan regions where households have more mortgages. We expect that the Riksbank will continue to lower the key interest rate at the beginning of 2025, and will land around 1.5 percent by the summer of 2025. This will contribute to lower variable mortgage interest rates, with some lag. The lower interest rate situation is a consequence of a weak recovery in the Swedish economy, which needs support from a more expansive monetary policy, says Stefan Westerberg i the press release.
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Source: nyheter24.se
