Austerity expected after Swedish election

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(iStock)
(iStock)
Sweden is still in a slump, says the National Institute of Economic Research (NIER).

Unemployment is still high, and NIER expects government policy to include more cutbacks after the election.

The only ray of light is the ongoing building of houses, says the institute in a press release.

“One important reason is that exports have not provided the stimulus needed to kick-start growth,” writes NIER.

It says there is a “remarkably” large number of people getting into work, but there are lots of others soon looking to start work, and as the effect of current reforms wear off unemployment is expected to rise in the next few years, although the economy will improve.

Inflation is very low, but is expected to rise, and interest rates are also very low, and expected to stay that way until the end of 2015.

Related stories from around the North:

Canada:  Nunavut should turn growth into prosperity according to economic outlook, CBC News

Finland: Confidence in Finnish economy creeps upwards, Yle News

Greenland: Analysis: Implications of Greenland’s decision to allow uranium mining, Blog by Mia Bennett

Norway:  Norway’s Prime Minister calls for advancing Northern Norway’s knowledge economy, Blog by Mia Bennett

Russia: Visa-free Russian border ‘would create thousands of jobs’ in Finland, Yle News

Sweden: Mine applications hit new low in 2013, Radio Sweden

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Radio Sweden

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