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Sweden hikes growth forecast for 2010, 2011

AFP/The Local · 20 Aug 2010, 15:58

Published: 20 Aug 2010 15:58 GMT+02:00

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"The Swedish economy has shown an unexpectedly strong development during the first six months of the year," the finance ministry said in a statement.

"The unexpectedly strong and broad recovery, combined with increasingly optimistic hope for the future among households and companies and an improved situation abroad has led the finance ministry to increase its gross domestic product (GDP) forecast for this year and next," it added.

Meanwhile, Finance Minister Anders Borg cautioned that "large risks remain, especially if one looks abroad where many countries are dealing with considerable difficulties in their public finances."

Borg said in the statement. "The government there wants to remain careful. Returning to a surplus is our highest priority so we can defend Sweden against new threats."

Story continues below…

The new forecasts were published just a month ahead of Sweden's September 19th elections, with the centre-right government hoping a strong economic recovery will help it win a second four-year term.

AFP/The Local (news@thelocal.se)

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Your comments about this article

16:55 August 20, 2010 by NickM
And how will they return to surplus? Yes you guessed it - by privatising everything once they've won the election. How clever these politicians are.
17:05 August 20, 2010 by Vitas
One month before elections - dramatic shift, unexpectedly strong development , increasingly optimistic.... But if everything will not be so good - we told "large risks remain"
19:05 August 20, 2010 by Russ Cobleigh
those of us out here who are arbetslös need jobs NOW!
19:08 August 20, 2010 by Jan M
Sound economics. Take unexpectedly strong figures and rather than view them as a blip simply extrapolate them for next couple of years whilst talking about large risks which interestingly haven't been factored into the GDP projections whatsoever. Rarely has a politician delivered such cheap populist garbage in the run up to an election.
19:21 August 20, 2010 by Twiceshy
I'm absolutely positive this has nothing to do with the fact that the election is coming up.

Absolutely positive, I tell you.
20:06 August 20, 2010 by miss79
hehehe nice drama moderates, privatise more
01:20 August 21, 2010 by Luke35711
In contrast, the US economy stagnated before the oncoming midterm elections (which is really bad news for the Democrats). Everybody talks openly about it. So it's either that Swedish economy runs to a much higher standard, or that Swedish political class runs to a much lower standard. But it's hard to imagine that Swedish economy could grow at an extraordinary 4.5% while the US goes into double-dip recession.
04:35 August 21, 2010 by Thebinary1
The surplus would be achieved by privatisation AND welfare cuts.
12:49 August 21, 2010 by Kevin Harris
Many EU countries have been doing rather better than expected this year; especially Germany. Could it be possible that well-managed Sweden actually has been doing better than expected as well?

Or is that just too wacky a possibilty to be true?
14:50 August 21, 2010 by Jan M
Too wacky. German is Europe's leading export country with a whole raft of prestige manufacturers that are profitable and still under German ownership. Sweden's economic strength traditionally are also manufacturing/export industries. One or two are holding up well but the rest have performed poorly and a number have been sold off in the last 12 months. No comparison I'm afraid. The key is the phrase 'an unexpectedly strong GDP in increase in the first 6 months of this year'. This increase is in comparison to the GDP levels a year ago. A country can therefore rebound and still not be too hot. The UK recorded +1.1% in the last quarter and it's still toast.
18:20 August 21, 2010 by Kevin Harris
Of course you are right Jan. The idea that Sweden's economy did better than expected in Q's 1 and 2 is bizarre and freakish.
22:32 August 21, 2010 by Jan M
That's not too bizarre of course. Sweden = Germany is. Extrapolating two quarters to the next two years is and so on.
22:41 August 21, 2010 by waffen
Why is this so " . . . .hard to imagine that the Swedish economy could grow at an extraordinary 4.5% while [whereas] the U.S. goes into double-dip recession [Depression]?

Sweden came out of their banking crisis and changed things, and managed extraordinarily well. Sweden isn't alone.

Germany is also doing extraordinarily well; and China overtook Japan as number two. Before long, either China or Germany will be number one, and Sweden, and most of Europe, will all be doing much better than the country that exported their Depression to the world.

Ask Angela Merkle about that, and she will tell you in no uncertain terms who is reponsible for the world's woes.
23:13 August 21, 2010 by Jan M
Because as an export country Sweden needs an economically vibrant import-led economy to pair with - eg. USA if it doesn't double dip. Don't say China can sub for that because firstly China is a million miles away from transforming into a US-style consumer society and secondly because if it wants Volvos for example it doesn't need to import them when it can buy the company.
06:33 August 22, 2010 by JoeSwede
This sounds good. I guess the question is how low did 2009 go so that 2010 could be up 4.5%.

Good steady leadership!
17:51 October 27, 2011 by Uriel9
I just wanted to look at old articles and now i feel compelled to laugh at all of you being soooooo wroooooooong hahahah
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