IMF endorses Sweden’s economy

The board of the International Monetary Fund, IMF, has stated that Sweden’s economy continues to develop well but the government ought to deal with growing household debt. It predicts Sweden’s GDP to increase by 3.4% this year and 2.4% next year. The budget deficit is expected to be small this year and next year despite migration costs and investments in training and the labour market.

“Despite beneficial conditions on the labour market it still takes too long to get new arrivals into work, and unemployment is high among workers born abroad with little education,” writes the IMF. It also suggests reforms are needed to tackle the rise in house prices.