Anders Borg presented the Ministry of Finance's new economic forecast at Almedalen, July 4th.
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.
The Government's Spring Fiscal Policy Bill contains forecasts for macroeconomic developments and public sector finances.
The economic recovery that began internationally in 2013 is expected to continue in 2014 and 2015. An expansionary monetary policy in large parts of the world and diminished fiscal policy restraint are expected to contribute to a relatively high growth rate worldwide.
GDP growth in Sweden is expected to increase in 2014 and 2015 as a result of the stronger international outlook and increased confidence among Swedish businesses and households.
On the whole, employment and the labour force are expected to continue to grow at a good pace in 2014, but the increase in employment will not be strong enough to produce a marked reduction in unemployment. This is not expected to occur until 2015.
About the forecasts
The Government always presents forecasts for the Swedish economy and public finances in connection with the Spring Fiscal Policy Bill in April and the Budget Bill in September. These forecasts are normally updated a few times in between.
Government forecasts contain key indicators related to the requirements on fiscal policy contained in the fiscal policy framework.