Anders Borg.Photo:Scanpix

Borg:Sweden's economy still in difficulty

Sweden's economic situation is still tough, according to Finance Minister Anders Borg. At a press briefing Thursday, Borg said the level of risk in the international economy remains "high", and that the figures point towards a continued weak economic performance in Sweden.

Borg expects GDP growth for the year will be relatively weak, and with high unemployment this year and 2014.

"We need to bring energy to the Swedish economy. This requires a more expansive financial policy," said Borg.

Economists interviewed by news agency TT speculated that Borg's briefing could spell a more generous fall budget and more money for Swedish households in the form of lower taxes for retirees, lower income taxes and other things ahead of the elections next fall.

Magdalena Andersson, the economic-political spokesperson for the opposition Social Democrats, warned that it is important to let market cycles, not election cycles, guide decision-makers in figuring out how much room there is to make reforms.

Borg, himself did not go into detail yet on what this fall's budget would look like.

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