Sweden to writes down GDP forecast significantly as external economic pressure stress domestic growth


Thursday, 11 August 2011
Swedish minister of finance Anders Borg announces that his office will make a significant downward revision of the assessment earlier made last spring.

In a press conference on Thursday, Finance Minister, Anders Borg along with government members, said that “It is clear that we will make a significant downward revision of the assessment we made last spring.”

Stock market turbulence will continue. August, September and October will probably be messy months according to the Finance Minister, Anders Borg, who also are encouraging downward revisions of growth in the Swedish economy.


"There is a real risk that the turmoil will continue during August, September and October. It is clear that one reason for this is that the basic problems are complicated to manage, "said Finance Minister Anders Borg when the government received the press at a breakfast meeting on Thursday.

Turmoil in the markets will also have an impact on the Swedish economy and growth here at home intimated Borg.
“It is clear that we will have a significant downward revision of growth for 2012.”
However, it is not just the recent stock market unrest behind.

“The recovery is set in a quiet location, we saw that even before the stock market turmoil. It is likely that growth in the Swedish economy will be lower than we previously expected.”

Anders Borg however pointed out that the situation still looks better than in 2008.
"The financial system works significantly better than it did then.”
By Team

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