Sweden’s Finance Minister Anders Borg painted a gloomier picture of the Swedish economy on Monday, saying the nation’s growth forecast for next year would likely be lowered.
“The most likely scenario is that we will revise growth downward when we come out with new figures for 2015, then we’ll see what happens with 2016 and 2017,” Borg told reporters at an economic conference in Stockholm.
The latest economic forecast is for a growth of 2.5 percent this year and 3.1 percent next year. The minister said the sluggish recovery in the world’s emerging economies and weaker growth in Europe are expected to impact Swedish exports and also possibly dampen investments.
Borg also highlighted the increased costs on the Swedish state due to more refugees coming to Sweden.
“The developments in Iraq and Syria mean that we have a rather substantial increase in costs for asylum, integration and migration. This will have an impact on the public finances,” Borg said told Swedish Radio News.
The new growth forecasts will be presented in conjunction with the government’s meeting in a few weeks at the Swedish Prime Minister’s country residence in Harpsund.
Related stories from around the North:
Canada: The evolution of the arts economy in the Canadian North, Eye on the Arctic
Finland: Confidence in Finnish economy creeps upwards, Yle News
Norway: Norway’s Prime Minister calls for advancing Northern Norway’s knowledge economy, Blog by Mia Bennett
Sweden: Cleaner Baltic to yield billions, Radio Sweden
United States: Exxon could hold keys to Alaska future at Point Thomson, Alaska Dispatch