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economic crisis

Next Year: Unemployment and Deflation

Published onsdag 17 december 2008 kl 11.30
Swedish exports are predicted to decline

On Wednesday Swedish business federation Svenskt Näringsliv added its predictions on the state of the economy.

It says that unemployment could reach 9.6 percent by 2010.

But good news for those still in work - next year may bring sinking prices, or deflation, boosting households’ buying power.

Swedish exports will also shrink by 3.5 percent next year but rise by 1 percent by 2010.

This agrees with Finance Minister Anders Borg’s Tuesday figures, where he said that Sweden would see its lowest rate of growth for 30 years.

Next year the economy would grow no more than +0.1 percent, might shrink by -1.2 percent, but the government predicts that by 2010 Sweden’s economy will be growing again.

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