Sweden’s sawmill industry has been operating in a deep recession that began in late 2022, when inflation accelerated sharply, interest rates rose quickly and housing construction collapsed. The combination of high energy and input costs, rapidly increasing mortgage rates and falling real wages undermined household confidence and triggered one of the sharpest declines in residential building activity since the 1990s. By 2024–2025, deliveries to the domestic construction sector had fallen to levels last seen during that period, severely reducing demand for construction-grade lumber on the home market. Sawmills managed to keep production volumes relatively stable through ...
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