• Swedish CFOs expect weak business climate
• Sweden losing safe haven appeal; SEK overvalued

Bloomberg said that Sweden, last year’s best-performing long-term government bond market, has turned into a loser for creditors as the biggest Nordic economy shrinks.

Swedish notes maturing in 10 years or more have lost 4.3 percent this year, after returning 31 percent in 2011 in kronor terms, according to Bloomberg/EFFAS indexes.

"Swedish growth will slow," Stefan Ingves, the governor of the country's central bank, told Bloomberg. "It doesn't look good in the world around us. We're affected, and that matters."

The European Union's fastest-growing economy in 2010 shrank 1.1 percent last quarter because half its $500 billion gross domestic product comes from exports and about 70 percent of that goes to debt-stricken Europe.

“This year will be weak as we’ve had a clear slowdown of the global economy,” Finance Minister Anders Borg told reporters in Stockholm on March 14. If things get worse, “we will have to deal with that.” The government “is prepared” to act, he said.