The Swedish economy is expected to continue its gradual recovery after the longest and deepest recession Sweden has experienced since the crisis of the 1930s. This is the picture presented by the Ministry of Finance's new economic forecast. The recovery has been sluggish because of the continued subdued state of the global economy. Little by little, growth will pick up in the years ahead. The public finances will strengthen as the economy returns to normal.
Sweden's convergence programme for 2014 was submitted to the European Commission on 16 April. The Swedish convergence programme is based on the measures announced in the Budget Bill for 2014 and the 2014 Spring Fiscal Policy Bill, as well as the economic outlook and public finance forecast presented in the 2014 Spring Fiscal Policy Bill.
On 9 April the Government presented its Spring Fiscal Policy Bill to the Riksdag. In this Spring Fiscal Policy Bill, the Government is presenting initiatives for more knowledge, Improved availability and skills in healthcare and further business climate improvements. As the recovery becomes more stable, fiscal policy will enter a new phase which will see public finances return to surplus. All initiatives will therefore be funded krona for krona.
Seminar with Minister for Finance Anders Borg and Minister for Enterprise Annie Lööf on Swedish business climate
On behalf of the Swedish Government, the World Bank has conducted a study of the business climate in Sweden. Together with the Ministry of Enterprise, Energy and Communications, the Ministry of Finance organizes a seminar as the first part of the report is published.
The seminar will take place on March 10 at 10.00 am.
On Thursday 20 February, Minister for Finance Anders Borg presented a new forecast of the outcome for the Swedish economy and the public finances. The Swedish economy will gradually return to normal after years of financial and debt crisis, according to the Ministry of Finance February forecast. The deficits will slowly return to balance and surplus. In 2018, net lending is estimated to reach over 1 per cent of GDP.
"It is now important to strengthen the buffers and again build up a surplus in public finances. A small open economy with a large financial sector should safeguard strong public finances to protect jobs and welfare when there is turbulence in the world around us," says Minister for Finance Anders Borg.
On 23-25 January, Minister for Finance Anders Borg will take part in the Annual Meeting of the World Economic Forum in Davos. Mr Borg will take part in discussions on topics including the global economic situation, issues linked to financial stability and measures to stimulate investments to create jobs and sustainable growth. Mr Borg will also have a number of private meetings, including with Governor of the Bank of England Mark Carney and economists Kenneth Rogoff, Nouriel Roubini and Adam Posen.
Sweden's growth is being held back by a weak international economy in the wake of the financial and debt crisis. Despite this, the labour market has developed somewhat more strongly than expected. As a result of the continued weakness of the world economy exports are only gradually recovering, while households are continuing to increase their consumption. The growth rate will strengthen and unemployment decline slightly in 2014. At the same time, there is still uncertainty about the economic outlook. The risk of weaker growth continues to dominate, according to the Ministry of Finance's new forecast.
Statistics Sweden today presented GDP growth figures indicating that GDP increased by 0.3 per cent in the third quarter of this year.
"Recovery is being hampered by weak growth in other countries, which is affecting the export sector. Domestic demand is showing somewhat better growth. It is crucial to support the domestic economy when exports fail to do so," says Minister for Finance Anders Borg.
Today the Government adopted guidelines for the management of the central government debt. The direction of debt policy remains unchanged. The debt shares and interest rate refixing periods for central government debt remain unchanged.
Budget for 2014: Policy for growth and jobs
On September 18, the Government presented its proposed central government budget for 2014 to the Riksdag. The Government considers that there is scope for reforms in excess of SEK 24 billion next year, and proposes investments in measures to increase employment, pupils' knowledge and business competitiveness, while welfare and cohesion is strengthened and the environment and climate protected.