• Sweden edition
 

Sweden amends growth forecast

Published: 12 Oct 2010 08:21 GMT+02:00
Updated: 12 Oct 2010 08:21 GMT+02:00

The new figures are a revision of previous forecasts issued in August of 4.5 percent in 2010 and 4 percent in 2011.

The government said Sweden had come through the global economic crisis "better than most countries."

"The permanent effects of the crisis are expected to be less pronounced than previously assumed, which will mean a more rapid recovery," according to a statement on Tuesday morning.

But it was stressed that there was still great uncertainty about future developments of the economy, and added "major problems in government finances in other countries may affect the Swedish economy as well."

"Sweden is still in a period of low economic activity and high unemployment. And there are still risks that developments will be less favourable than expected," finance minister Anders Borg said.

The government forecast unemployment would reach 8.4 percent in 2010 and

8.0 percent in 2011 and then decline gradually to reach 6.0 percent in 2014, attributing the change to "economic recovery, government policies and a growing population."

Borg stated that the boom years have to be capitalized on to ensure that unemployment is not allowed to remain high.

"The years of high growth that lie ahead must be used to ensure that more people, including people who have had difficulty becoming established in the labour market, begin to work," he said.

Economists with the SEB bank expect Sweden's growth in 2011 to be a bit lower than the 3.7 percent forecast by the government.

"The government is maybe a little on the optimistic side, but within the margin of errror," said SEB economist Olle Holmgren to the TT news agency.

At Nordea bank, economists noted that the government has adjusted it's GDP forecast for 2010 upward, which is in line with available statistics.

At the same time, Nordea warns that the government's prognosis for 2011 and 2012 may be a bit too optimistic.

The consumer price index is tipped to grow by 1.2 percent in 2010 and by 1.5 percent in 2011.

Consumer prices climbed by 0.8 percent from August to September, according to Statistics Sweden figures published on Tuesday. The rate of inflation, measured as an average change in consumer prices over the previous 12 months, came in at 1.4 percent, up from 0.9 percent in August.

Underlying inflation - according to CPIF which removes the effects of changed interest rates - climbed from 1.4 percent to 1.8 in September.

The 1.4 percent rate of inflation was slightly higher than that predicted by most forecasters, as were the price rises from August to September.

"We have long since passed crisis situation in the Swedish economy. We are not in crisis anymore. We are starting to get closer to a situation which in many respects can normally be considered to be faster than normal," said Torbjörn Isaksson at Nordea.

The higher inflationary pressure was taken as justification for Riksbank plans to hike the base (repo) rate. Nordea expects the Riksbank to raise the repo rate gradually over the winter to stay at 1.75 percent in April.

Tuesday's inflation figures affect this rate path forecast only marginally, Isaksson believed.

TT/AFP/The Local (news@thelocal.se)

Don't miss...X
Left Right

Your comments about this article

09:08 October 12, 2010 by swedish_gang
go sweden go :))
09:44 October 12, 2010 by Nemesis
This is good news.

I hope they maintain the growth for a decade or so, that way they might get rid of real inemployment.
09:48 October 12, 2010 by Great Scott
I wish these politicians would give the percentage number of able working people in full time employment, this would give the real figure of unemployed.
10:17 October 12, 2010 by Jan M
What a comedian. Anders attributes a projected reduction in unemployment in part to a 'growing population'. Genius.
19:36 October 12, 2010 by miss79
another bullshit
23:04 October 12, 2010 by jazzIIIlove
"Sweden is still in a period of low economic activity and high unemployment."

of course it's, here internal market is fixed and the youth seems not skilled, and without any aim in life and unfortunately, most seems lazy and working in areas that doesn't require a real ability. Everybody seems here working is in just service business area and nursing and health care. I am Ok with those, but I don't know why every Swede I met is working in ICA or coop consum or such.

Swedes need intellectual immigrant force to have more export share in world's economy w.r.t other countries.
Today's headlines
In Pictures: The Local's Property of the Week
Photo: Fastighetsbyrån

In Pictures: The Local's Property of the Week

All aboard! We're off to the island of Gotland for our Property of the Week - a home right in the heart of Medieval Visby. Whether you're looking to buy or dying to look - this is the place for you. READ  

Stockholm Pride 2014
Stockholm Pride glides into seventeenth year
Stockholm Pride. Photo: Erik Mårtensson/TT

Stockholm Pride glides into seventeenth year

The largest pride festival in Scandinavia is back for the 17th year in a row. The week promises to be packed with activities - and a glamorous opening gala with Eurovision winner Conchita Wurst. READ  

Preschool teacher arrested for child rape
Photo: Hasse Holmberg/TT

Preschool teacher arrested for child rape

A man has been arrested on the suspicion of raping a child at the preschool where he is employed. READ  

Police arrest 17 people after fatal shooting
Police at the scene. Photo: Niklas Luks/TT

Police arrest 17 people after fatal shooting

Seventeen people were arrested during the early hours of Tuesday after a man was shot dead in central Sweden. Several of the suspects were already known to the police for gang crimes. READ  

Cops find 15kg cocaine stash in woman's car

Cops find 15kg cocaine stash in woman's car

A 35-year-old woman faces charges for aggravated narcotic crimes after police found 15 kilogrammes of unusually high-concentrated cocaine in her car. READ  

Opinion
The top six ways the US and Sweden differ

The top six ways the US and Sweden differ

Back home in the US and with a solid Swedish stint under his belt, contributor Steven Schier has listed what he thinks are the six biggest differences between Sweden and the states. READ  

Swedish expert slams Norway terror alert
Terrorism expert Ranstorp and a policeman in Norway. Photos: TT

Swedish expert slams Norway terror alert

A Swedish terrorism expert has come forward criticizing the way Norway has handled its recent terror threat, saying the day the threat began was a "total problem in intelligence". READ  

Swedish nurse reported for patient 'death wave'

Swedish nurse reported for patient 'death wave'

A nurse in southern Sweden has been reported for abuse at a senior care centre after she allegedly waved to a colleague with the hand of a recently-dead resident. READ  

Pandas Plopp and Polly born in Swedish zoo
Plopp and Polly, the offspring of Pandora the panda. Photo: Kolmården

Pandas Plopp and Polly born in Swedish zoo

A pair of red panda cubs have been born in central Sweden, a wildlife park announced on Monday. READ  

Green Party ranked 'most gay friendly' in Sweden

Green Party ranked 'most gay friendly' in Sweden

The Green Party's views are 88.6 percent "LGBT-friendly", a Swedish LGBT rights group claimed on Monday, making the Greens the most gay-friendly of all Sweden's parliamentary parties. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Gallery
People-watching, June 26th - 28th. Get inside Stockholm's hottest nightclubs
Gallery
Top ten Swedish taboos
Society
Seven-year-old Swede cycles to Berlin
Politics
'Gaza conflict needs help, not empty rhetoric'
Society
Swedes voted 'most beautiful' in the Nordics
Blog updates

27 July

Approaching Stockholm (Around Sweden in a kayak) »

"I woke up in the comfort of my own little cabin on Eva and Rolf’s boat, it was 7:30am and I was feeling a bit groggy after a couple of beers with all the lovely locals the night before. The previous day had really taken its toll on my body and I was very stiff and..." READ »

 

24 July

Sharing our Pride: Celebrating Love & the LGBT Community! (Stockholm in my American Heart) »

"It’s mid- July in Stockholm, and with much of the city on vacation, things can seem a little quiet – the streets, the bus, and the grocery store. One thing that has not paused for a summer break, though, is preparation for Stockholm’s Pride Festival, which will take place from July 28 to August 2...." READ »

 
 
 
Business & Money
Sweden demands EU clarity on Bitcoin tax
National
Swedish organic sales enjoy 'amazing' growth
Photo: Johan Nilsson/TT
Society
What's On in Sweden
Gallery
People-watching July 23
National
Swedish cops elect not to shoot 'angry elks'
Business & Money
New alcohol retail rules threaten micro-breweries
Gallery
People-watching Båstad
Business & Money
Sweden falls to third in global innovation index
Society
Swedish ornithologists keep webcam watch
Photo: Andreas Nordström/Image Bank Sweden
Gallery
Top ten Swedish beach hot spots
Tech
Swedish Wiki vet sets new content record
Photo: Fastighetsbyrån
Lifestyle
In Pictures: The Local's Property of the Week
Photo: Finest.se
Gallery
People-watching July 15-16
Photo: Ola Ericson/Image Bank Sweden
Society
What's On in Sweden
Photo: Lisa Mikulski
National
Hope springs eternal for expat pet shop owner
Gallery
Princess Estelle steals limelight at mum's birthday
National
Swedes risk infants' lives by covering up prams
National
Swede runs for office just using Bitcoin funds
Sponsored Article
Introducing... Your finances in Stockholm
Sponsored Article
Introducing... Housing in Stockholm
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

729
jobs available
Swedish Down Town Consulting & Productions
Swedish Down Town Consulting & Productions is an innovative business company which provides valuable assistance with the Swedish Authorities, Swedish language practice and general communications. Call 073-100 47 81 or visit:
www.swedishdowntown.com
If you want to drink, that’s your business.
If you want to stop, we can help.

Learn more about English-language Alcoholics Anonymous in Sweden. No dues. No fees. Confidentiality assured.
AA-EUROPE.ORG/SWEDEN
PSD Media
PSD Media is marketing company that offers innovative solutions for online retailers. We provide modern solutions that help increase traffic and raise conversion. Visit our site at:
http://psdmedia.se