Borg lowers Swedish economic growth forecast
AFP · 3 Apr 2008, 13:50
Published: 03 Apr 2008 13:50 GMT+02:00
- Swedes more confident about the economy (31 Mar 08)
- Sweden's budget surplus surpasses forecasts (07 Mar 08)
- Sweden sees growth slow in 2007 (29 Feb 08)
In the autumn budget, the government forecast GDP growth of 3.2 percent in 2008 and 2.5 percent in 2009 but cut these in February to 2.3 percent and 2.2 percent respectively.
Borg said he expects financial market turbulence to last the entire year, although Sweden has to date managed "relatively" well.
He expects investment growth to slow and capacity use to dampen, with export growth remaining cautious.
Borg declined to comment on how much space there is for reforms. He said strong public sector finances indicate there is "some" space, but uncertainty about the forecasts points to caution.