Economics
Sweden Delivers ‘Neutral’ Fiscal Policy as Recession Fears Grow
- Government sticks to optimistic forecast for steady employment
- Government sees Riksbank keeping negative rates into 2021
A national flag of Sweden flies from a commercial building in Stockholm.
Photographer: Mikael Sjoberg/BloombergThis article is for subscribers only.
Sweden’s government cut its economic growth forecasts for a second time this year, and promised a “neutral” fiscal policy for next year to cope with the slowdown.
At a press conference in Harpsund, south of Stockholm, Finance Minister Magdalena Andersson said next year’s budget, which still pencils in a surplus, will be “well-calibrated” and that the country is “well-equipped” to handle the economic slowdown.