• 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)

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
National
Swedish town 'like Venice' after heavy rains
Photo: TT

Swedish town 'like Venice' after heavy rains

Torrential rains in western Sweden have left some towns submersed as water levels have risen to 1.5 metres above normal for the season with forecasts indicating that is worse to come. READ  

Ebola crisis
Sweden pledges new aid to UN Ebola fund
Photo: TT

Sweden pledges new aid to UN Ebola fund

Sweden has offered a new sizeable contribution to the fund set up by UN chief Ban K-moon to fight the Ebola outbreak. READ  

Society
'Dark forces' target refugee hunting scheme
Photo: Lars-Göran Thuresson/Älgriket

'Dark forces' target refugee hunting scheme

The Swedish hunting association runs a project to encourage young asylum-seekers to learn about hunting, a move which has proved controversial among some far right groups. READ  

Business & Money
American sales squeeze Ericsson profits
Ericsson CEO Hans Vestberg presents the third-quarter earnings report at the company's headquarters in Kista. Photo: Janerik Henriksson/TT

American sales squeeze Ericsson profits

Swedish telecoms equipment maker Ericsson reported a decline in net profit in the third quarter despite an increase in sales, boosted by business in emerging markets. READ  

Interview
'Too many concerts feel the same'
Sofar hosts secret gigs in Swedish apartments. Photo: Sofar

'Too many concerts feel the same'

Kattis Bjork founded Stockholm's secret gig scene - Sofar - a year ago. The Local caught up with her as she prepared to celebrate the project's anniversary this weekend and revealed the concept will spread to other Swedish cities in 2015. READ  

Stockholm 'sub hunt'
Sweden calls off suspect submarine search
Ships are returning to shore in Sweden. Photo: TT

Sweden calls off suspect submarine search

The core search for a suspected foreign vessel in Swedish waters has been called off. The armed forces said they remained convinced foreign underwater activity had taken place but had not identified an intruder. READ  

Business & Money
US and Japan fuel surge for Volvo trucks
Ed Carbaugh prepares to install parts on a truck engine on an assembly line at Volvo Trucks' powertrain manufacturing facility in Hagerstown, Maryland, March 2014. Photo: Patrick Semansky/AP

US and Japan fuel surge for Volvo trucks

Sweden's Volvo, the world's second-largest maker of trucks, said Friday it saw a spike in profits in the third quarter, boosted by thriving sales in the US and Japanese markets. READ  

Inspectors attacked at rogue doc’s surgery
Cigarettes and beer photo: Shutterstock

Inspectors attacked at rogue doc’s surgery

Inspectors who were sent to shut down a doctor’s surgery in Gothenburg were physically attacked and fled the premises to get help from the police. READ  

Police turn Swede’s vodka into water
A Swede loads a car with alcohol in northern Germany. File photo: Drago Prvulovic/TT

Police turn Swede’s vodka into water

Swedish police say they will pay a man 16,000 kronor ($2,200) in damages after much of the alcohol they confiscated from him was stolen, while many of the bottles they returned were filled with water. READ  

Diplomacy
US to get first female ambassador in Sweden
File photo: Athena Center for Leadership Studies

US to get first female ambassador in Sweden

The United States Embassy in Stockholm is set to get its first female ambassador after the White House announced it was nominating the Iranian-American ex-investment banker Azita Raji to take over from Mark Brzezinski. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Lifestyle
What's On in Sweden: October 24th - 31st
Gallery
People-watching: October 22nd
Gallery
In Pictures: Prince Carl Philip and Sofia Hellqvist
Lifestyle
Eight things to love about renting a Swedish apartment
National
Vasa ship cannon blasted in Sweden
Blog updates

24 October

Editor’s blog, October 24th (The Local Sweden) »

"Hi readers, Get ready to read our weekly digest of Swedish news in less than 60 seconds. The..." READ »

 

24 October

Is darkness weather? (Blogweiser) »

"I try very hard not to talk about the weather. This has come after a decade..." READ »

 
 
 
National
Sub hunt: Day-by-day
National
Sub hunt: Stockholm islanders share their fears with The Local
Sponsored Article
The best options for oversea transfers
National
Get 20% off unique Swedish homeware
National
Dentist gives free care to Roma beggars
Business & Money
Get your own office in Gothenburg or Stockholm - free for a day
Gallery
Property of the week: Malmö
Gallery
PHOTOS: 'Foreign activity' in Swedish waters
Gallery
People-watching: October 19th
TT
Society
QUIZ: How good is your Swedish?
Lifestyle
What's on in Sweden: October 17th - 24th
Society
The nudity... and nine other things expat men notice in Sweden
Gallery
People-watching: October 15th
Gallery
Your views: Should outdoor smoking be banned in Sweden?
Business & Money
Sweden has 'large hole' in finances
Sponsored Article
Introducing... Finding a job in Stockholm
Society
Monster salmon caught in northern Sweden
Gallery
Property of the week: Lorensberg
National
Scandinavia's child bride
National
Ebola crisis: How is Sweden preparing?
Business & Money
How Sweden is becoming a cashless society
Gallery
Stockholm Burlesque Festival 2014
National
How a little red horse became a symbol for Sweden
Gallery
People-watching: October 12th
Business & Money
The hottest start-ups from southern Sweden
National
What's on in Sweden: October 10th - 17th
National
Stockholm is 'best' region for well-being
Gallery
People-watching: October 8th
National
Five facts to know about Patrick Modiano
Society
My Swedish Career: A French fashionista in Sweden
Society
Swede's anti-bully Facebook tale goes viral
Society
Have you seen Sweden's viral subway cancer campaign?
National
Isis: Swedes linked to Turkish prisoner swap
National
Should Swedes be banned from buying sex abroad?
Gallery
Fredrik Reinfeldt's leaving presents
National
Five Swedish TV shows you shouldn't miss
Gallery
A tool belt, a casserole, and a book. Fredrik Reinfeldt's parliament gifts
TT
Lifestyle
Top five winter festivals in Sweden
TT
National
Sami reindeer herders win mine reprieve
Gallery
Property of the Week: Gamla Enskede
Sponsored Article
How to catch the first lobster of the year
Team SCA
Sponsored Article
All-female SCA team takes off on Volvo Ocean Race
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

974
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
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
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