The Swedish government on Friday slightly raised its forecast for the Nordic country's economy for this year while lowering growth expectations for 2024.

The government in a statement predicted GDP would decline by 0.4% in 2023, up from a previous expectation of a 1.0% decline, and grow by 0.8% next year, down from 1.2% seen previously.

It forecast headline inflation of 5.8% this year and 2.4% in 2024 against 5.9% and 2.2%, respectively, seen in April.

"Household consumption has declined for four consecutive quarters ... there is also a downturn in the housing market and falling housing investments are weighing on the economy," Finance Minister Elisabeth Svantesson said in a statement. (Reporting by Anna Ringstrom, editing by Terje Solsvik)