Increased risks to economy

Finance Minister Magdalena Andersson (S) has revised down the government’s GDP growth forecast to 3.5 per cent, from 3.8 per cent, in 2016, but has revised the forecast up to 2.3 per cent, from 2.2 per cent, in 2017. The Swedish economy is healthy with improved public finances and falling unemployment, and the government can boost spending by SKr 24 billion in the autumn budget.

Erik Penser’s chief economist Sven-Arne Svensson presented the bank’s economic outlook on Wednesday, forecasting GDP growth of 3.2 per cent in 2016 and 2.0 per cent in 2017.

Sweden is expected to continue to outperform most other countries in terms of the current account surplus, public debt, the savings ratio and the labour market. However, there are increased risks to the economy, stressed Svensson.