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Public finances "stronger than expected"

Published tisdag 18 april 2017 kl 15.56
Economy forecaster: Strong public finances gives the government more flexibility.
(5:39 min)
The government's spring budget proposal. Photo: Janerik Henriksson / TT.
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The government's spring budget proposal. Photo: Janerik Henriksson / TT.
Finance Minister Magdalena Andersson presenting 2016's budget in the fall of last year. File Photo: Magnus Hjalmarson Neideman / SvD / TT.
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Finance Minister Magdalena Andersson presenting 2016's budget in the fall of last year. File Photo: Magnus Hjalmarson Neideman / SvD / TT.

What do today's budget proposals say about the state of the Swedish economy? The National Institute of Economic Research's top forecaster gives some pointers.

Sweden's centre-left government presented its spring amendment budget on Tuesday, announcing that a public finance surplus allowed for increased spending on social welfare, defense, and security.

"I would say that the Swedish public finances are stronger than expected," Ylva Hedén-Westerdahl, head forecaster at the National Institute of Economic Research, told Radio Sweden.

"This gives some room for the government to maneuver," she added.

Hedén-Westerdahl cautioned that there are many external factors that could change the positive state of Sweden's economy such as the Trump administration's trade policies and upcoming in elections in France, Germany, and the United Kingdom.

Domestic economic threats included inflated asset prices and low interest rates. Although more positively, indicators such as household spending were projected to remain resilient.

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