Sweden’s FinMin warns of rising unemployment
Sweden’s Finance Minister Anders Borg said that the country is going through “a historic crisis” as unemployment rate is likely to rise above 11 percent next two year.
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On Sunday, one day ahead of his presentation of the government’s 2010 budget bill, Anders Borg outlined his economic outlook on a press conference in Stockholm.
“The Swedish economy will shrink considerably this year and there will be weak growth next year. It’s a very difficult situation for the Swedish economy,” he said, pointing out that the country is struggling with a “historic crisis”.
Gross domestic product, GDP, is likely to drop 5.2 percent this year before it swings to a 0.6 percent increase next year and 3.1 percent in 2011. That is slightly more positive than in previous prognoses. The Finance Minister pointed out that Sweden has “one of the fastest recoveries within the OECD”.
Still, unemployment is expected to swell the coming two years; to 11.4 percent next year and 11.6 percent in 2011.
Anders Borg said that Sweden must continue its “crisis politics” with expansive fiscal policy. The budget proposal includes higher funding of the state employment agency and further cuts of the income taxes.
Sweden's centre-right government on Saturday announced income tax cuts of 10 billion kronor to stimulate the job market
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Last Updated (Monday, 21 September 2009 09:14)
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