Sweden – one of Europe’s stars in recent years – will grow its economy faster than previously expected but threats to recovery in Europe and a slowdown in China mean that there are large downside risks, Reuters said.

“The years ahead are going to be better for Sweden,” Finance Minister Magdalena Andersson told reporters. “Growth is picking up, unemployment is falling, government finances are getting better.” 

The government reckons the economy will expand 2.8 percent this year, faster than its June forecast of 2.6 percent, and growth is expected to remain high in the years ahead, Reuters reported.