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Sweden boosts economic growth forecast

Sweden boosts economic growth forecast

Published: 04 Mar 2011 08:17 GMT+01:00
Updated: 04 Mar 2011 08:17 GMT+01:00

The Swedish government on Thursday raised its economic growth forecast for this year and said unemployment would shrink significantly, following the recent publication of strong statistics.

Finance Minister Anders Borg told reporters that the government now expects Sweden's gross domestic product this year to grow 4.8 percent, up from its previous estimate of 3.7 percent.

"We now predict growth of well above four percent, which signifies that we already now have erased the impact of the crisis and that we will continue to see rapid growth," Borg said.

For 2012, the government now expects Sweden's economy to grow 3.5 percent, slightly higher than its previous estimate given in October of 3.4 percent, the finance ministry said.

After suffering a deep recession during the global financial crisis, with its GDP shrinking 5.3 percent in 2009, Sweden's economy has rapidly recovered, posting 5.5 percent growth in 2010.

In the fourth quarter last year, the economy posted year-on-year growth of 7.3 percent, the highest since the national statistics agency started recording quarterly data in 1970.

"Like the United States, our gross domestic product now stands at the same level it did in 2008. But contrary to the United States, our employment level has also returned to the 2008 level," Borg said.

After hitting a peak of 8.4 percent in 2010, unemployment is expected to sink to 7.4 percent this year, the government said, revising down its previous 2011 estimate of 8.0 percent.

The Swedish jobless rate is then expected to sink further to 6.7 percent in 2012 and should drop below five percent in 2015, according to the new forecast.

"This brings us to the level we had in the 1980s," before Sweden's deep economic crisis at the beginning of the 90s that sent unemployment figures skyrocketing, Borg stressed.

AFP/The Local (news@thelocal.se)

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Your comments about this article

10:07 March 4, 2011 by Great Scott
The only way Sweden's loony government can reduce unemployment is to use their current slimy tactics, i.e. get the unemployed to work for nothing and make more further education places available. Sweden's GDP 1 year ago was -5.5%, today they claim? It's 5.5%. A difference of 0.0%, don't be fooled by false impressions.

This idiot borg also talks about unemployment in the 1980's and how high it rose to in the 1990's, the exact time when the last conservative government was in power (15th September 1991). You can fool some of the people some of the time, mr borg, but you can fool all of the people all of the time.

And I keep hearing their dumb claims of a strong kronor, once again a myth. Before the last failed conservative government got into power the Swedish kronor was stronger than the Danish and Norwegian currencies, today it's the weakest!
11:59 March 4, 2011 by Nemesis
Yes, there is a considerable push to create more praktik jobs, in Skåne anyway.

The put them on a 6 month praktik course to have them classed as employed, then fire them one week before the end of the praktik course. They fill the job with another praktik.

Just take a look at the unskilled labour in Skåne. Borg is filling that well with praktik.

If all praktik, pre-pensioned and those on various schemes to keep them of the heavily distorted unemployment register were actually listed as unemployed, the figures would be very different.
14:07 March 4, 2011 by miss79
i dont trust this ponytail finance minister
15:31 March 4, 2011 by mablog
Good news for Sweden, it is not necessarily good news for me. The argument is very simple, if I am not even called for an interview after tens of applications and with an excellent CV now that the economy is booming, what can i expect for the future?

Probably trying somewhere
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