The government revises up its forecast for the public financial savings with a total of 85 billion during the forecast period, compared with the vårbudgeten in april.
It said finance minister Magdalena Andersson at a press briefing on Wednesday, when she presented the government’s views on the economic situation.
The public financial savings rate is now in line with the surplus target over the entire forecast period and the little ”guppet” in the year that was in the vårbudget is now gone.
According to the minister of finance is due to the correction of a tight fiscal policy, increased cost control, inter alia, within the health insurance and that more work results in increased tax revenues.
Magdalena Andersson noted that global growth continues to increase but is still lower than it has been historically. Among other things, China has a slightly slowing growth, but from high levels.
She said that the global demand has been subdued since the financial crisis, but the assessment is that growth will increase and referred, inter alia, to the increased industrial production and confidence indicators suggest further growth.
”We have a fairly favorable position in the world, but there are also risks. We see more downside risks than upside risks,” said the finance minister, and mentioned, among them a slowdown in the chinese economy, about the becomes stronger-than-expected, it would affect the entire world economy.
Possible imbalances in asset prices are another risk, a risk which also exists in Sweden, as well as the political uncertainty in the U.S. and Europe, among them brexit, which may lead to greater protectionism. The stability of the european banking sector is still a risk the government takes.
An upside risk is the rising investment in euro area.
Regarding the Swedish economic situation is revisions in GDP forecasts small and growth is driven by domestic demand, net exports and investment. Construction investment accounts for a large part, however, labour shortages affect.
The government takes a certain amount of space to household consumption can improvement.
”We are seeing broad-based growth in line with historical levels”, according to the minister of finance.
She pointed also out that the Swedish labour market is very strong, with the highest rate of employment in 25 years.
”But we want to unemployment is to decrease faster than in the forecast, and the government will therefore come back with more action,” she said.
Noted that the unemployment rate among domestic-born and foreign-born is very large.
The minister of finance took up the demographic challenges that Sweden faces with the larger baby boomers and that we are living longer, which will drive costs higher. Up to the year 2025, approximately 40 billion of the increase in the level of public consumption.
”We want to maintain the quality of welfare, we need to make priorities,” said Magdalena Andersson.
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