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Shrinking Swedish Growth

Published onsdag 4 juni 2008 kl 10.04

The Organization for Economic Cooperation and Development is forecasting shrinking growth in Sweden, with even worse results for the rest of Europe, and the United States.

In its annual report the OECD says Sweden’s GNP will drop to 2.1 percent this year and next. But despite the slowdown, the Paris-based think tank says the Swedish central bank should be prepared to continue to raise interest rates.

The downturn is largely attributed to expected reduced demand for Swedish exports because of the economic situation abroad. The OECD says growth in the euro zone and Japan will drop to 1.7 percent this year, with just a 1.1 percent increase in the American economy.

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