Sweden sees growth slow in 2007

Sweden has reported a sharp slowdown in growth in 2007 from the previous year, shrinking from 4.1 to 2.6 percent, official statistics showed.

In the fourth quarter, Swedish gross domestic product (GDP) grew by 0.8 percent from the third quarter and by 2.8 percent compared to the fourth quarter of 2006.

Household consumption and gross fixed capital formation were the primary contributors to growth in the fourth quarter, Statistics Sweden said.

Finance Minister Anders Borg on Friday revised downwards Sweden’s growth forecast for 2008 and 2009.

The centre-right government had previously expected growth of 3.2 percent this year but said it now expected it to come in around 2.2 or 2.3 percent.

For 2009, it lowered its forecast from 2.5 percent to 2.2 percent.