IMF warns Sweden of weak growth

Tuesday, 15 May 2012
Swedish fiscal and monetary policy may be approved by a delegation from the International Monetary Fund (IMF), which this week completed an annual visit to Sweden. But the IMF warns Sweden against big economic slowdown.

The weak demand for Swedish exports is expected to continue. Sweden's GDP growth is projected to be in the range 0 to 1 percent this year, and activities are expected to pick up again from mid-year, according to the IMF.

"But the downside risks on the short and medium term against these projections is significant and reflects the fragility of Europe, "the IMF said.

According to IMF economic policy in Sweden should be adapted to meet the weaknesses in the short term. The government's budget is guided by the financial regulations, opening for a modest increase in deficit in 2012, as a reflection of the economic cycle.

"Both fiscal and monetary policy instruments have the space to make decisive adjustments if risks materialize, and in the financial sector various steps have been taken to strengthen the resilience of financial markets, and more are on their way, "the IMF said.
By Scancomark.se team

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