The Swedish government predicts that GDP growth will slow to 1.6 percent this year and the next two years compared to 2.3 percent last year. It it then estimated to rise to 2.0 percent in 2022.
It is also thought there will be fewer jobless people than previously estimated, with the government's forecast predicting an unemployment rate of 6.3 percent this year and 6.4 percent the following two years.
“However, the United Kingdom's withdrawal from the EU, US trade policy and uncertainty in the Swedish housing market mean that there is a risk of development being weaker than expected,” writes the government in its assessment of the economy, presented together with the spring budget proposal on Wednesday.
READ ALSO: Sweden heading for economic slowdown
The spring budget is used to propose amendments to the main autumn budget in 2018, which was adopted by parliament on the basis of the budget proposed by the conservative opposition parties.
The new proposal, which includes reforms of 4.5 billion kronor ($487 million), is based on the so-called January Agreement between Sweden's Social Democrat-Green government and the Centre and Liberal parties.