Consumer confidence is really important for the economy in Sweden. When people feel good about their money and the economy, they tend to spend more. This spending helps create demand for different products and services.

How Consumer Confidence Affects Economic Growth:

1. More Spending by Consumers:

   • When people feel confident, they usually spend more on things they want or need. In fact, this spending makes up around 55% of Sweden's GDP. For example, in 2020, after the lockdowns, consumer spending went up by about 4.5% as people felt better about their situation.

2. Business Investments:

   • When consumers are happy, businesses want to grow. In 2021, business investments in Sweden increased by 9%. This was partly because people were buying more.

3. Job Creation:

   • High consumer confidence means that companies need more workers. In Sweden, the unemployment rate fell to 7.5% in 2022, showing that more consumer spending helped create jobs.

4. Effect on Prices:

   • When a lot of people start spending money, prices can go up too. In 2021, inflation in Sweden hit about 3.4%. This was because consumer confidence and spending was rising.

In short, consumer confidence plays a big role in Sweden's economic growth. It leads to more spending, business investments, and jobs, creating a positive cycle that helps the economy thrive.