Bloomberg News

Sweden to Withstand Growth Slowdown With Surpluses, Agency Says

October 25, 2011

Oct. 25 (Bloomberg) -- Sweden will post budget surpluses this year and next even as growth fades in the largest Nordic economy, the National Debt Office said.

The central government surplus will be 69 billion kronor ($10.5 billion) this year and 25 billion kronor in 2012, the Stockholm-based agency said today. The debt office in May estimated surpluses of 99 billion kronor in 2011 and 68 billion kronor in 2012.

Economic growth will slow to about 1.5 percent next year from 4 percent this year amid “a relatively limited economic slowdown and orderly, albeit protracted, management of the problems in the euro zone,” the agency said.

Sweden’s government last month delayed planned income tax cuts until at least 2014 in an effort to safeguard public finances. It expects balanced public finances next year and a 0.1 percent surplus this year as growth slows.

The debt agency said it will issue 35 billion kronor in nominal government debt next year, up from a May forecast of 22 billion kronor.

--Editors: Jonas Bergman, Tasneem Brogger

To contact the reporter on this story: Johan Carlstrom in Stockholm at jcarlstrom@bloomberg.net.

To contact the editor responsible for this story: Tasneem Brogger at tbrogger@bloomberg.net


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