Swedish Prime Minister Fredrik Reinfeldt said he was happy to see Barack Obama win and praised his “inclusive campaign”. But ha also warned that the U.S. President will face major challenges since Congress is politically divided and budget deficit is growing.

"I want to congratulate Barack Obama on his reelection and that the Democrats seem to have held their majority in the Senate," he told Swedish Radio. "But the reality that he wakes up to is that the US has a huge budget deficit."

He said that Obama will face major challenges since Congress was politically divided, and it remained to be seen how the President would be able to carry out his economic policy.

Reinfeldt noted that he would have cooperated with either of the men vying to be the US commander-in-chief, but pointed out that he has a good relationship with Obama.

"I have always had a very good and close contact with Obama, as well as with his wife Michelle." Reinfeldt told tabloid Aftonbladet. "Obama is a very relaxed President with great listening skills".

Also the leader of the Social Democrats, Stefan Löfven, welcomed Obama's win.

"I am very happy and now the Democrats are looking forward to a very fun party," Stefan Löfven told Swedish Radio. "I think Obama has a great opportunity to really get the US economy going, and that would have big importance for Europe and Sweden."

Barack Obama beat the Republican challenger Mitt Romney in Tuesday's election to secure a second term in the White House.