UPDATE 1-Swedish government cuts GDP growth forecast for 2026 to 2.3%

Adds detail and background in paragraphs 3-4

- The Swedish government on Wednesday lowered its economic growth forecast for the country this year to 2.3%, citing economic consequences of the war in the Middle East.

Its previous forecast, from April 13, was for GDP growth of 2.8%.

The government, which is facing a general election in September, raised its forecast for 2027 to 2.7% from 2.5%.

"The situation around us is brutally turbulent and the impact on us large. But we also have a pretty good foundation in relative terms," Finance Minister Elisabeth Svantesson told a press conference.