• Sweden edition
 
Sweden slashes 2013 growth forecast

Sweden slashes 2013 growth forecast

Published: 21 Dec 2012 11:11 GMT+01:00
Updated: 21 Dec 2012 11:11 GMT+01:00

"The recovery is going to be late and fragile. The labour market can be described as weak and soft in the coming years," Borg told reporters on Friday.

The government also revised its unemployment forecast for 2013, expecting Sweden's jobless rate to rise to 8.2 percent, compared with the previous forecast of 7.5 percent.

Unemployment is expected to edge up to 8.3 percent in 2014 before dropping back to 7.4 percent in 2015.

Borg added that Sweden would likely run a budget deficit for three years in a row from 2012 through 2014.

"It's become increasingly clear that the crisis in Europe and developments in the United States are having a negative impact on employment and growth in Sweden," Borg said in a statement.

"We can expect a weak 2013."

Borg admitted it would be hard to predict exactly how bad things would get, hinting the government may implement measures to prop up growth next year and ahead in 2014 and 2015.

"It may include reviewing labour market rules and perhaps implement some job creation measures somewhat earlier," he said.

The government's previous forecast, released in September, has been roundly criticized as being too optimistic.

And many analysts and institutions have since issued more conservative growth predictions for the Swedish economy.

The lower forecast announced by Borg on Friday brings the government closer inline with other predictions.

Earlier this week, Sweden's National Institute of Economic Research (Konjunkturinstitutet) said it expected Sweden's GDP to grow by 0.8 percent in 2013, with unemployment expected to hit 8.3 percent.

The Riksbank, which on Wednesday cut Sweden's benchmark interest rate down to 1.0 percent, expects 1.2 percent GDP growth in 2013 and a jobless rate of 8.1 percent.

TT/The Local/dl

Follow The Local on Twitter

Don't miss...X
Left Right

Your comments about this article

00:09 December 23, 2012 by Dio
Sad news, but still better than most other countries!
21:29 December 23, 2012 by Eric1
Probably better than the US next year. President Obama and the Democrats are determined to make the US a third world country by impoverishing the majority of Americans and rewarding their cronies.
Today's headlines
Getinge Floods
Swedish floods spread wider as rain continues
Photo: Anders Andersson/TT

Swedish floods spread wider as rain continues

UPDATED: The flood in southern Sweden spread further on Wednesday, with forecasters predicting rain all week. With the defence minister on the scene, officials have warned that up to 8,000 households risk evacuation. READ  

Top ministers count cost of 'less secure world'
Photo: Maja Suslin/TT

Top ministers count cost of 'less secure world'

Foreign and Finance Ministers Carl Bildt and Anders Borg held a press conference on Wednesday to discuss how Sweden was being affected by a "less secure" world, and how it would foot the bill for a growing influx of refugees. READ  

Volvo profits saved by Chinese devotion
Volvo Cars chief executive Håkan Samuelsson. Photo: Fredrik Sandberg/TT

Volvo profits saved by Chinese devotion

The now Chinese-owned Volvo Car Group announced a return to profits on Wednesday - thanks to the Swedish brand's popularity in China. READ  

Ikea founder gives giant donation to hometown

Ikea founder gives giant donation to hometown

Ikea founder Ingvar Kamprad donated a gift to his hometown on Wednesday to the tune of 53 million kronor ($7.7 million). The cash is to be used for developing the area. READ  

Police hunt masked thief after Stockholm fire
Photo: Fanni Olin Dahl/TT

Police hunt masked thief after Stockholm fire

The Slussen tunnel in Stockholm began billowing out black smoke on Wednesday afternoon. Police believe that the fire was connected to an attempted robbery earlier in the day. READ  

Elections 2014
Parties duel as refugee costs rocket
Photos: TT

Parties duel as refugee costs rocket

Prime Minister Fredrik Reinfeldt and opposition leader Stefan Löfven clashed on Wednesday after the Migration Board asked for more money to handle Sweden's influx of refugees. READ  

Introducing: Sweden's five minority languages
The Sami in northern Sweden. Photo: Fredrik Sandberg/TT

Introducing: Sweden's five minority languages

Did you know there are five official minority languages in Sweden? The Local's Isabela Vrba finds out what they are, how they're protected, and what rights their speakers have. READ  

Swedish docs puzzled by deformed penis trend

Swedish docs puzzled by deformed penis trend

More and more Swedish boys are born with deformed penises, and researchers are uncertain exactly what's behind the increase. READ  

The Local List
What Sweden means to you in just one Tweet
Photos: Shutterstock/Imagebank Sweden

What Sweden means to you in just one Tweet

The Local Sweden has been asking readers to squeeze their view of Sweden into just 140 characters or less. Here's what you came up with up for #SwedeninaTweet. READ  

Sweden and the Bronx
Swedes celebrate 375th anniversary of the Bronx
The Bronx. Photo:Shutterstock.

Swedes celebrate 375th anniversary of the Bronx

What do the Bronx and Sweden have in common? More than an affiliation with the Yankees, it turns out. And one small Swedish town is about to make that abundantly clear. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Society
Did you know the Bronx in NYC was named after a Swede?
Politics
"Iraq reminds me of the Yugoslav wars. It's the same story."
Society
Swedes slam Danes for 'racist' art
National
Majority of Swedes favour more or just as many refugees
Society
Lock your bathrooms: Swedish toilet invader on the the loose
Blog updates

17 August

Sea Fever (Around Sweden in a kayak) »

"I’m going to keep this post short and sweet as its not something I take any pleasure in writing. After much deliberation I have made the heartbreaking decision to abandon my trip after 1200km due to reoccurring injury. It is not a decision I have made lightly and it is one that has been truly devastating..." READ »

 

17 August

St. Louis strong (Blogweiser) »

"It’s typically a bad sign when my hometown makes news in Sweden. St. Louis was in the headlines here a few years ago when a tornado struck the airport. The city also caught attention after a politician talked about ‘legitimate rape’. Now, shooting and riots this week in Ferguson, a part of St. Louis, are..." READ »

 
 
 
Politics
'Assange will not leave until safe'
Gallery
See more images from the southern Sweden floods
Sponsored Article
Find out what gives this Swedish school executive appeal
Society
Serial chicken smuggler caught at Norway border. Again.
Society
This gold coin may be the key to solving a Swedish massacre
Shutterstock
Lifestyle
The Swedish mentor (and why you may need one)
National
Food agency warns girls: 'Don't eat stinky fish'
Politics
Reinfeldt calls for tolerance to refugees
Gallery
People-watching August 16-17
National
Sweden celebrates 200 years of peace
Society
Top ten literal Swedish words
Politics
'Terror training should be illegal': Liberal Party
Gallery
Swedes talk about 200 years of national peace
Politics
Islamic extremist shakes Sweden with TV threat
National
Teacher fined for 'Hitler salute' in German class
Politics
Swedish politician proposes ban on begging
National
Swede asks for epidural and gets disinfectant
National
Swede reports 'expensive' sex to police
Education
Sweden plans to scrap SFI for adult education
Skatteverket
Sponsored Article
Introducing... ID cards and permits 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

682
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