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Sweden: Election Result Too Close To Call

The right-wing bloc appears to have obtained a narrow victory in the 11 September 2022 parliamentary election in Sweden (AAA, Stable trend), according to preliminary results with 95% of votes counted. However, given the narrow gap of 0.7 percentage points between the two blocs, the postal votes and the ballots from abroad could still swing the final result. The Swedish Electoral Authority anticipates more conclusive results on Wednesday, 14 September 2022 at the earliest.

Key Highlights include:

-- Preliminary electoral results suggest the right-wing bloc is set to take power in Sweden following eight years of Social Democratic party rule, but the final result is too close to call.

-- The strong performance of the far-right will strengthen its hand on policy discussions, including immigration and law and order.

-- Regardless of which bloc ends up claiming victory, forming a coherent and stable government will be a difficult task due to the policy differences within both sides.

“From a fiscal perspective, DBRS Morningstar expects the next government, regardless of its composition, to introduce additional measures to help businesses and households cope with high energy prices in the coming months,” said Javier Rouillet, Vice President at DBRS Morningstar. “At the same time, we consider it likely that the incoming government will remain committed to restoring fiscal prudence as soon as economic conditions allow.”