Published by Global Banking & Finance Review®
Posted on May 28, 2025
2 min readLast updated: January 23, 2026
Add as preferred source on GoogleRiksbank warns of increased financial stability risks in Sweden due to U.S. tariffs and policy shifts, impacting economic growth.
STOCKHOLM (Reuters) -Risks to financial stability in Sweden have increased as a result of U.S. President Donald Trump's tariffs and the administration's foreign policy agenda, the central bank said on Wednesday.
"The sharp shifts in U.S. trade and security policy have caused substantial market movements during the spring and entail greater uncertainty than usual," the Riksbank said in a statement accompanying its bi-annual financial stability report.
"The risk of financial instability has increased," it said.
The Riksbank said Sweden's starting point for dealing with increased uncertainty was good, with a robust policy framework, strong public finances and profitable banks that had strong capital and liquidity buffers.
But it also pointed to vulnerabilities related to the interlinked banking system and heavily indebted property companies and households.
Donald Trump's on-again, off-again tariffs have already hit Sweden's economy, which stalled in the first quarter, according to flash figures. Final GDP figures are due on Friday.
The government recently cut its full-year growth forecast to 1.8% from 2.3%, and Finance Minister Elisabeth Svantesson said risks were that the outcome could be worse.
The central bank has said it could cut the policy rate in the months ahead if growth slows and price pressures continue to ease.
(Reporting by Anna Ringstrom and Simon Johnson, editing by Louise Rasmussen)
The Riksbank stated that risks to financial stability in Sweden have increased due to U.S. President Donald Trump's tariffs and foreign policy.
The Riksbank pointed to vulnerabilities in the interlinked banking system and the heavily indebted property companies and households.
Donald Trump's tariffs have already impacted Sweden's economy, which stalled in the first quarter, leading to a government cut in the full-year growth forecast.
The Riksbank indicated it could cut the policy rate in the coming months if economic growth slows and price pressures continue to ease.
The Swedish government recently revised its growth forecast down to 1.8% from 2.3%, with Finance Minister Elisabeth Svantesson noting that outcomes could be worse.
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