• 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 Swedish government has forecast that GDP will climb by 4.8 percent in 2010, and 3.7 percent in 2011, according to the financial plan in the budget proposition made public on Tuesday morning.

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
Florida 'mystery knight' dies in Sweden
Michael Boatwright (R) and Medieval knight re-enactors.

Florida 'mystery knight' dies in Sweden

The "motel mystery" American who baffled US authorities by only speaking Swedish when he woke up from a coma last year has passed away, Swedish media reported on Wednesday. READ () »

Swedes open coffin of 850-year-old king
Photo: Bertil Ericson/TT

Swedes open coffin of 850-year-old king

UPDATED: Scientists pried open the 850-year-old casket of King Erik the Holy on Wednesday, hoping to find out more about the king, his crown, and his eating habits. READ () »

TeliaSonera announces first-quarter profit drop
TeliaSonera CEO Johan Dennelind. File photo: TT

TeliaSonera announces first-quarter profit drop

Stockholm-listed telecom operator TeliaSonera on Wednesday said profits had fallen in the first quarter, but hoped offering customers more data solutions in the future would turn things around. READ () »

'Imperfect EU better than revolting nationalism'
Fredrik Reinfeldt. File photo: TT

'Imperfect EU better than revolting nationalism'

Swedish Prime Minister Fredrik Reinfeldt on Wednesday urged young voters to head to the European parliamentary polls on May 25th "to cure the European disease of nationalism". READ () »

Ericsson quarterly profit defies sluggish sales
Ericsson CEO Hans Vestberg at the first quarter press conference. Photo: TT

Ericsson quarterly profit defies sluggish sales

Swedish telecom giant Ericsson on Wednesday announced a drop in sales but posted a sharp rise in first-quarter profit, which nonetheless fell shy of analyst predictions. READ () »

Fatal Norrköping brawl
Four brothers held as cops fear brawl reprisals
Photo: Johan Nilsson/TT

Four brothers held as cops fear brawl reprisals

Swedish police fear that several people involved in a brawl in eastern Sweden on Monday night may be seeking revenge after two brothers were shot dead. READ () »

Sponsored Article
Beautiful pearls of southeast Sweden
The town of Västervik.

Beautiful pearls of southeast Sweden

Ask a Swede, and they are likely to say that their favourite holiday spot is in the southeast of Sweden. Eastern Småland and Öland offer a smörgåsbord of all the things dearest to the Swedes - from the beloved children's book author Astrid Lindgren to deep forests, long sandy beaches, perfect spots for that all-important 'fika', and a surprising amount of space, peace and quiet. READ () »

Weekend weather to bring summer warmth
Swedes enjoy hot dogs and cherry blossoms in Stockholm's Kungsträdgården. Photo: Jessica Gow/TT

Weekend weather to bring summer warmth

The sun is set to stick around and temperatures could climb into the twenties over the weekend, Swedish meteorologists said on Wednesday READ () »

'Day-care rapist' admits molesting eight kids

'Day-care rapist' admits molesting eight kids

A 21-year-old man confessed on Wednesday to sex crimes against eight children at a day care where he was working as an intern. READ () »

Swedish cops nab man for having big muscles
An unrelated bodybuilder. File photo: Ann Törnkvist

Swedish cops nab man for having big muscles

Police in Sweden's south who hauled a muscular man in for steroid testing have had their knuckles rapped, after it was ruled that big biceps cannot be grounds for narcotics suspicions. READ () »

RECEIVE OUR NEWSLETTER AND ALERTS
TT
Gallery
Inside the 850-year-old king's coffin
Features
Sponsored: South-eastern Sweden offers Öland beaches and more
Gallery
Swedish underwear shop puts staff in front of the camera
Gallery
IN PICTURES: The Local's Property of the Week - Täby
Sponsored: India+Sweden Week - India Unlimited
Features
Sponsored: India+Sweden Week - A film, food, and finance feast
National
University applications rocket to record high
finest.se
Gallery
People-watching April 18-20
TT
Society
Kids in Victorian garb mark Swedish Easter
Shutterstock
National
Swedish MP ordered chemtrail probe
Society
Swedish supermarket Ica pulls contested Easter commercial off air
Kungahuset
Society
Swedish royals set baptism date for princess
finest.se
Gallery
People-watching April 16
Advertisement:
Politics
Who's the prime minister's heir?
Alfie Atkins
Society
Are children's books the key to families integrating in Sweden?
National
'Sweden Dem protests cater to party's martyr image'
National
'Swedish research grants were fantastic, but now it's like Australia'
Society
Only in Sweden: The ten problems you'd never encounter elsewhere
National
Swedes stopped to take my picture, but didn't look me in the eyes
Business & Money
A swipe of the hand replaced cash and cards in Lund
YouTube
Features
Video: Oliver Gee finds out how to embrace The Swedish Hug
TT
National
Abba duo hints at reunion
Private
National
Flash mobs hug it out across Sweden
Finest.se
Gallery
People-watching April 11-13
Stockholm School of Economics
Sponsored Article
Why a bachelor's degree is no longer enough
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 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

Blog Update: The Diplomatic Dispatch

28 October 15:16

The Green Growth Group Summit »

"Today on the 28 October in Brussels, a large group of key EU Ministers and business people, including UK Secretary of State for Energy and Climate Change Edward Davey, and Swedish Environment Minister Lena Ek, will meet to discuss green growth. They all have a stake in resolving a challenge which, although it is crucial..." READ »

719
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