Sweden's National Institute of Economic Research (KI) said Friday the global economic downturn and the financial crisis would have substantial effects on the real economy in Sweden.
"GDP will drop by nearly one percent in 2009, and the slump in the economy will continue in 2010. All factors considered, GDP will be down by 0.9 percent for the full year 2009. Boosted by somewhat stronger international GDP growth and powerful stimulation of the economy through both monetary and fiscal policy, GDP growth in Sweden will pick up to 1.9 percent in 2010," KI said in its newest forecast report.
"The number of layoff notices has increased dramatically, at the same time, newly reported job openings have continued to decrease, and firms have cut back on their hiring plans, reducing employment by almost 3 percent in 2009," the report said, adding that the number of persons employed will thus be 135,000 less than in 2008. Unemployment will continue to rise, reaching 9 percent in2010.
KI also pointed out in the report that general government finances were strong. At the same time, resource utilization will be rapidly decreasing in 2009 and 2010. It will therefore be necessary to strengthen cyclically adjusted net lending in the years immediately following 2010 if Sweden is not to keep falling short of the surplus target.
Source: Xinhua
|
Comment
Tell A Friend
Print Format
Save Article