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Swedish economy better than in years

Published måndag 21 december 2015 kl 17.04
"We are entering a small boom after several years of a slump"
(5:45 min)
Finance Minister Magdalena Andersson. Photo: Ryan Tebo/Sveriges Radio.
Finance Minister Magdalena Andersson. Photo: Ryan Tebo/Sveriges Radio.

New forecasts released Monday reveal a strong economy for Sweden in the coming few years.

Swedish Finance Minister Magdalena Andersson gave a press conference Monday, saying that economic growth in Sweden for the next two years will be higher than even in the US, Germany and the UK.

The National Institute of Economic Research (NIER) also released their Economic Tendency Indicator report Monday. The report summarizes consumer and business perception of the Swedish economy, and all the signs seem to point to an improved economic forecast for the country in the immediate future, exceeding previous forecasts and expectations.

Unemployment is predicted to decrease from the current 7.4 percent to 6.5 percent in 2017 and the GDP grew by 3.8 percent this year and will grow by 3.9 percent in 2016. This GDP growth is higher than NIER's previous forecast of 3 percent this year and 3.1 percent next year.

"We are entering a small boom after several years of a slump, partly because of expansionary fiscal policy," Pär Österholm, head of GDP analysis at NIER, told Radio Sweden.

Finance Minister Magdalena Andersson said that consumption and investments are primarily responsible for the economic boom. She also stressed the importance of keeping the public finances in order and working to reduce the budget deficit.

"We will continue to decrease the budget deficits and pay off the public debt," Andersson told Radio Sweden.

Andersson said that the government has already promised to increase funding to municipalities to help them deal with the increased numbers of refugees, so that they can maintain a high quality in schools, health care and elderly care.

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