Exports boost Swedish economy

PROSPECTS for Sweden's economy, a hot issue ahead of upcoming September 19 elections, are looking bright thanks to exports, domestic demand and strong public finances, banks and the country's financial management authority said yesterday.

SEB bank said that the Swedish economy has provided "upside surprises in recent months." It forecast that Swedish gross domestic product (GDP) to grow 4.7 per cent in 2010, then decelerate to 2.9 per cent in 2011 and 2.3 per cent in 2012. "Lower interest rates, tax cuts and a rapid upturn in exports - combined with the absence of falling home prices - have made possible a strong rebound in both output and employment after the deep recession," it said.

In its latest forecasts published less than a month ahead of the country's next elections, Sweden's centre-right government, which is hoping to win a second four-year-term on the back of a strong economic recovery, forecast a 4.5-per cent rise in Swedish GDP this year and a 4.0-per cent rise in 2011.AFP