Swedish Economy

Swedish GDP Growth
The Swedish economy continues to weaken. With the international economic downturn, growth in exports has slowed, and households are pessimistic about the tendency of the economy. In 2009, the labor market will soften, and despite an expansionary fiscal policy, growth will remain modest. In 2010, growth in exports will pick up, and with fiscal policy still expansionary, household consumption will accelerate. All factors considered, GDP growth in calendar-adjusted terms will increase from 1.4 percent in 2008 and 1.6 percent in 2009 to 2.9 percent in 2010.

Labor Market
In the 2008 Budget Bill, the Government stated that the most important task of employment policy is to increase the employment level. Employment and the number of people working have increased sharply since 2006. In 2009, the projected employment rate will be 75.7 percent. Unemployment will increase from 6 percent in 2008 to 6.4 percent in 2009.

Public Finances
Swedish public finances continue to be strong. The government goal is to maintain a surplus in general government net lending averaging 1 percent of GDP over an economic cycle. The net lending is projected to be 1.1 percent of GDP in 2009, 1.6 percent in 2010, and 2.5 percent in 2011. The consolidated gross debt of the general government sector will decrease to 23.8 percent of GDP in 2011 from 35.5 percent in 2008.

This text is based on the Swedish Government Budget Bill for 2009 as well as forecasts by the National Institute of Economic Research. 

To learn more, visit the Swedish Government website