The economy remains weak, although the outlook has brightenedsomewhat since our May forecast, resulting in the upward revision of tax revenue. We nevertheless predict deficits for central government net lending, the local government sector and the old-age pension system throughout the period. The central government deficits are substantial, and the situation may also be problematic for the local government sector.Despite the slightly brighter economic outlook, the situation in the labour market still looks troubled. This means continued low tax revenue from taxes on employment and high expenditure on unemployment. Expenditure on the labour market is set to double through to 2011, when open unemployment is forecast to be 12.2% of the labour force.
Read more in our Summery and in Appendix.
For further information:
Patrik Andreasson, Phone +46 8 690 44 56
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