The International Monetary Fund, IMF, is not as cheerful about the Swedish economy as Finance Minister Anders Borg is.

• Sweden's economy a 'bright spot in Europe'
• Nordic countries leading Europe out of crisis
• Full statement: IMF Executive Board's outlook for Sweden

Just two weeks ago Anders Borg said that “Sweden's economy is strong and appears as an obvious spot of light in Europe where many countries are facing large problems” and hiked the outlook for the economy. The minister expects GDP to increase 3 percent this year and 3.8 percent next year.

The IMF disagrees. In a new report the organisation warns that the Sweden’s economy may be hit by weak global demand and eurozone troubles. It expects GDP to increase by 3 percent in 2010 – and slow down to 1.9 percent next year.

The organisation also has a more gloomy view on the Swedish labour market. While Anders Borg forecast unemployment to drop to 8.9 percent this year, the IMF believes it will amount to 9.3 percent.

The Scandinavian country was hard-hit by the global economic crisis but its economy quickly bounced back. The country's GDP increased by 3 percent in the first quarter compared to the first quarter of 2009; considerably stronger than expected.

But as more than half of Sweden’s GDP comes from export, the economy is dependent on international trade and global demand. Therefore, despite the ongoing healthy recovery, near-term prospects for growth remain uncertain.

“While the global growth outlook has improved, risks remain, including from market stresses in Europe and the resulting ‘search for strong sovereigns,’ which has reversed much of the earlier krona depreciation attenuating prospects for net exports and growth”, the organization said, adding it supported the authorities’ intentions to keep domestic policies supportive and encouraged them to respond flexibly to evolving economic circumstances.

Sweden recently raised its key interest rate from a historic low 0.25 percent to 0.50 percent, reporting a strong economic recovery in the country which along with several Nordic neighbours appears to be leading Europe out of crisis.