Political Economy


Challenges in the Swedish economy continues to give Borg sleepless nights

Thursday, 08 August 2013
Swedish weak economic developments and fears of higher risks in the economy is the force behind the Swedish Finance minister, Anders Borg's sleeplessness.
The level of risk in the international economy remains high, and the figures show a continued weak economic performance in Sweden, according to Finance Minister Anders Borg.

"It's a continued challenging economic situation in Sweden and it is because we have financial challenges in the business environment, "he said at a press briefing on Thursday.
Anders Borg
Forecasts for world market was weaken in the summer. This is because the outcome was weaker than expected in Europe, and the arrival of a concern that growth in China in particular will be weaker than previously thought. Partly, this is also due to uncertainty about how long the U.S. Federal Reserve and other central banks will be left with an expansionary monetary policy.
The figures for the Swedish part, according to Borg is for continued low growth in 2013 and 2014 and continued weak labour market. The weaker growth abroad has partly been offset by robust domestic demand.

"We have strong public finances and good safety margins., we pursue economic policies that support the economic recovery, perhaps with an emphasis on the domestic sector, where we can provide better opportunities."

Regarding risks from BRIC countries, he said that the IMF has warned of an uncertainty in China's financial system, which can slam on growth.
"I think you should take these signals seriously., it looks as if we get a slightly weaker growth in China than previously expected, "said Anders Borg, adding that there are also concerns in Brazil, Russia and India , which means that there is no longer the same growth stimulus from the emerging countries as seen in recent years.
by Scancomark.com Team

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