The economic slowdown has a major impact on central government finances
The sharp deterioration in the economic climate will have a clear impact on central government finances in 2009-12. Weaker economic growth and higher unemployment mean that the central government budget balance has been revised down sharply and is now showing a deficit throughout the forecast period. The deficit in net lending is almost 3% of GDP in 2010, which is close to the maximum permitted level under the convergence criteria. The deficits in central government finances are primarily cyclical and will not last. Structural net lending remains positive and Swedish central government finances are strong by international standards.Read more in our Summery and in Appendix.
For further information:
Patrik Andreasson, Phone +46 8 690 44 56
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