• Sweden edition
 
Sweden projects budget surplus build-up

Sweden projects budget surplus build-up

Published: 13 Apr 2011 08:47 GMT+02:00
Updated: 13 Apr 2011 08:47 GMT+02:00

"In a situation when many other countries are experiencing austerity and weak economies, Sweden's economy is growing stronger. We must use this to ensure that more people find work and that welfare initiatives can be implemented," Borg said in a statement.

Public sector finances are expected to reach a surplus of 0.3 percent of GDP in 2011, 1.8 percent in 2012, and 2.8 percent by 2013, according to government projections.

According to Borg, the expected budget surplus gives the government more scope for carrying out tax cuts and other reforms.

"We've come to the conclusion that there is room for reforms in the autumn budget bill," said Borg.

He cautioned, however, that exactly how much room for reform may exist for the 2012 budget bill is hard to assess at the moment.

Borg emphasised, however, that "in a world that continues to be uncertain, with high levels of debt and large deficits" it's important to pad the public purse with enough money to deal with the next economic crisis

"You have to keep your powder dry, you have to have some stored up," he told reporters.

"Otherwise we end up in a situation where, if there is an acute economic crisis in Europe, we get dragged in by the uncertainty."

"At the same time it is important in a world that continues to be uncertain, with high levels of debt and large deficits, that we build up a surplus to enable us to manage future crises assertively," said Borg.

The government expects Sweden's economy to grow at a brisk 4.6 percent in 2011, before slowing down somewhat to 3.8 percent in 2012 and 3.6 percent in 2013.

In early March, Borg had projected 4.8 percent growth for the Swedish economy this year, 3.5 percent in 2012, and 3.2 percent in 2013.

"One can say there has been a strong economic development in Sweden," Borg said in a press conference.

Nevertheless, he warned that, despite the recent good times for the Swedish economy, risks remain and that it will take some time before the European Union's fiscal problems are solved.

"The market worries we've experienced the last few months are, unfortunately, to stay with us," said Borg.

He projected a "comparatively austere reality" and a "barren economic environment" in the coming years.

"This creates an obvious, future risk for a small, export-dependent country," he said.

Employment is expected to increase by 2.5 percent in 2011, 1.4 percent next year, and 1.3 percent in 2013.

Meanwhile, Sweden's jobless rate is expected to drop to 7.3 percent in 2011 before falling to 6.6 percent in 2012, and 5.8 percent in 2013.

According to the government, the primary aim of its fiscal policy is to achieve full employment and reduce social exclusion.

Unemployment is expected to drop to five percent by 2014, which would be the lowest figure in Sweden since 1991.

However, the government remains concerned that the ranks of Sweden's long-term unemployed have swelled. According to the government, there are problems in ensuring that job seekers are in fact ready to enter the market.

The government plans to improve support for job seekers and also explore providing long-term unemployed with more training.

Borg explained further that bringing down unemployment to levels included in the government's projections without increasing inflation or putting public finances at risk would be a challenge.

"This creates entirely new demands on how the labour market works," said Borg.

Among other things, young people must enter the job market faster and integration must be improved.

"It's also about people staying in the job market to an extent we've never seen before," said Borg.

In 2015, equilibrium unemployment is expected to be around 5 percent, while the structural reforms to be carried out are expected to boost the ranks of Sweden's employed by 215,000, according to the finance ministry.

Sweden's national debt is expected to climb to 30.6 percent of GDP in 2011 before falling to 27.1 percent next year.

By 2015, Sweden's debt is forecast to drop down to 12.5 percent, according to government projections.

Consumer prices, meanwhile, are expected to rise by 2.5 percent in 2011, 2.0 percent in 2012, and 2.8 percent in 2013.

Other risks to the government's forecast include household debt and increased housing prices.

And while there is less risk that the global economic recovery will slow because of market worries, developments in North Africa and the Middle East, as well as the earthquake, tsunami, and nuclear accident in Japan could all dampen global economic growth.

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

Your comments about this article

09:26 April 13, 2011 by SimonDMontfort
.... could it help that there is increased tax revenue and unemployment benefit disbursements are expected to be lower?
12:10 April 13, 2011 by Nemesis
A usggestion for the idiots in charge.

If they have a surplus, start paying of Sweden's long term debt instead of servicing its interest charges.

Also they should build up a a national investment fund to invest for future generations, instead of thowing it away now.

The neo-liberal ideology of tax breaks, corporate welfare and billionaire welfare should be banned.

Invest in the future of the country not short term tmporary goals.
14:06 April 13, 2011 by RobinHood
LOL, one of the few countries in the world to have a budget surplus (at any time, let alone the tail end of a global recession), and they're still "idiots".

There's just no pleasing some people.
17:29 April 13, 2011 by Nemesis
@ RobinHood,

Sweden has massive external debt and has made no effort to reduce it. A surplus would go a good way towards reducing it.
Today's headlines
Society
Swede's necklace found after 52 years in lake
Ing-Marie Olofsson whose necklace was found. Photo: Private

Swede's necklace found after 52 years in lake

A 66-year-old Swedish woman got the surprise of her life when a fisherman returned the necklace she dropped in a lake at the age of 14. READ  

International
Apology for Swedish model's stolen photos
Malin Sahlén during a Top Model shoot. Photo: TV3/Nina Holma

Apology for Swedish model's stolen photos

A British newspaper has apologised after a freelance journalist stole a Sweden's Next Top Model contestant's photo and created a fake Twitter account used to trick a UK minister. READ  

Brand stories
Johanna N: beautiful jewellery with a story

Johanna N: beautiful jewellery with a story

Aged just 27 and already living off of her own designs, some may consider Johanna Nilsson lucky. But she doesn't believe in luck. She's the founder of a jewellery line blending sustainability, subtle style, and Scandinavian simplicity - and it's taking the world by storm. READ  

Sport
Heel injury sidelines Zlatan in Barcelona clash
Photo: AP

Heel injury sidelines Zlatan in Barcelona clash

Paris Saint-Germain star Zlatan Ibrahimovic will miss Tuesday's Champions League clash with Barcelona at the Parc des Princes due to a nagging heel problem, the French club have confirmed. READ  

National
Stockholm patient tests negative after Ebola fears
The Infection Clinic at the Karolinska University Hospital in Huddinge. Photo: TT

Stockholm patient tests negative after Ebola fears

A patient in a Stockholm hospital who was suspected of having contracted the Ebola virus was given the all clear on Tuesday morning. READ  

Elections 2014
New coalition agrees on defence and migration
A Jas Gripen. Photo: TT

New coalition agrees on defence and migration

UPDATED: The Green Party has committed itself to expanding Sweden's defence force, while the Social Democrats have compromised on work permits for migrants. READ  

National
Fresh Ebola case investigated in Sweden
The patient is being treated at the Karolinska University Hospital. Photo: TT

Fresh Ebola case investigated in Sweden

Doctors in Stockholm are checking a patient suspected of having contracted the Ebola virus. READ  

Elections 2014
Sweden Democrat wins Deputy Speaker spot
Björn Söder. Photo: TT

Sweden Democrat wins Deputy Speaker spot

Despite most Members of Parliament abstaining from voting, Sweden Democrat party secretary Björn Söder has been announced as one of Sweden's new Deputy Speakers. READ  

Music
The five best Swedish songs of the month
Swedish singer Tove Lo. Photo: TT

The five best Swedish songs of the month

The Local's resident music guru Paul Connolly is back with another selection of his favourite Swedish tracks. READ  

International
Swedish model in hiding after UK politician sting
Malin Sahlén during a Top Model shoot. Photo: TV3/Nina Holma

Swedish model in hiding after UK politician sting

A Swedish model whose photo was used in a British tabloid newspaper sting without her permission has described the incident as "something terrible". READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Lifestyle
The five best Swedish songs of the month
Gallery
People-watching: September 28th
National
When Italian style meets Swedish simplicity
Lifestyle
Review: Sweden's first alcohol-free nightclub
Gallery
In Pictures: The MS Estonia disaster
Blog updates

28 September

Spoiled Doyle (Blogweiser) »

"What you gotta watch out for in Sweden is the good stuff. http://www.youtube.com/watch?v=Re_EzUe6xpI In Sweden, it’s the good things you have to watch out for. Video on @TheLocalSweden http://t.co/rAb8eGFdTD pic.twitter.com/w37YYwMXy1 — Joel Sherwood (@joeldsherwood) September 29, 2014 " READ »

 

26 September

 (The Local Sweden) »

"Hi readers, Autumn swept into Sweden at the start of this week with snow in the north of the country and flooding in the south. As well as a change in the weather, Sweden’s change in political direction became clearer, with Social Democrat leader Stefan Lofven formally announcing his party would work with the Greens as..." READ »

 
 
 
National
Swedish scientists sneak Bob Dylan lyrics into articles
Lifestyle
Ten things expat women notice in Sweden
Politics
What's next on Sweden's political stage?
Gallery
Sweden's 2014 election: Most memorable moments
Society
What's on in Sweden
Gallery
People-watching: September 24th
Seaman Oliver Gee with his first lobster
Lifestyle
How to catch the first lobster of the year
Gallery
In Pictures: Fredrik Reinfeldt through the years.
Society
Plucked out of Canada for love and guitars
Gallery
Property of the week - Torslanda
Politics
How Sweden Democrats went mainstream
Politics
Scandinavia and Scotland: closer links?
Sponsored Article
How to start a business in Stockholm
Society
Why is Stockholm's Södermalm so cool?
Politics
Sweden elections: Who's who?
Sponsored Article
Introducing… Insurance in Stockholm
Gallery
Princess Estelle through the years
Business & Money
Five golden rules for the Swedish job hunt
Society
A closer look at Sweden's five official minority languages
Politics
Sweden elections: How do they work?
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

877
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