Borg warns of growth risk

Sweden's finance minister, Anders Borg, has said the government's growth prognosis could be hit by problems in the US and parts of Europe.

But, Borg said, the government still believed that its previous statements about the future state of the economy would hold.

“Our judgement is that the economic situation outlined in the budget proposal still applies. But the risk has grown over the past few months,” he told a conference in Stockholm.

“We have seen a clear slowdown in the United States and some kind of slowdown in Europe, but at the same time the emerging economies of India, Russia and China have been performing more strongly than expected,” he added.

“The international market for Swedish products is sustaining itself well thanks to growth in emerging markets,” he said.

Borg underlined, however, that the prognosis was less certain than before, adding that there were clear risks of a downturn.