Welfare needs rise as we live longer

Today the Ministry of Finance presents its latest forecast for the economy and public finances, along with a new analysis of future demographic needs.

"Sweden is undergoing a demographic shift, as we are living longer and having more children. By 2026, we will need to have built more than 2 000 preschools, schools and homes for older people. We need to employ more than 150 000 additional welfare sector workers. This will be the major task of the coming electoral period. So we cannot afford to cut taxes for those who earn the most," says Minister for Finance Magdalena Andersson.

The expected growth rate this year is 2.6, slowing next year to 2.1 per cent. The unemployment forecast remains unchanged from the forecast in the Spring Fiscal Policy Bill and unemployment is expected to continue to fall. At the same time, the employment rate continues to be the highest in more than 25 years. Net lending is expected to be 0.7 percentage points this year, which is slightly lower than in the previous forecast. This is mainly due to a transfer of contributions to the EU between 2017 and 2018 for accounting purposes.

The risk of weaker-than-expected growth has increased. In addition to increased US protectionism, political uncertainty and the risk of a hard landing in China, the risk related to household indebtedness and Swedish housing prices remains.

"That's why it's so important that the Government has reduced the central government debt as a percentage of GDP by ten percentage points. This is the best insurance against a weaker position," Ms Andersson concludes.

Contact

Gösta Brunnander
Press Secretary to Minister for Finance Magdalena Andersson
Phone (switchboard) +46 8 405 10 00
Mobile +46 (0)72-544 28 66
email to Gösta Brunnander, via senior registry clerk
Isabel Lundin
Press Secretary to Minister for Finance Magdalena Andersson
Phone (switchboard) +46 8 405 10 00
Mobile +46 (0)76-296 46 38
email to Isabel Lundin, via senior registry clerk
Karine Raoufinia
Deputy Head of the Macroeconomic Forecasting Division
Phone +46 8 405 96 21
email to Karine Raoufinia, via senior registry clerk
Thomas G Pettersson
Head of the Public Finances Division
Phone + 46 73 985 08 37
email to Thomas G Pettersson, via senior registry clerk