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Sweden Business Forecast Report Q4 2012

Sweden Business Forecast Report Q4 2012 - new country guide report published

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2013-01-01 02:31:55 - Sweden Business Forecast Report Q4 2012 - a new country guide report on

Sweden´s status as an open trade-oriented economy means that the ongoing European economic crisis poses significant downside risks going into 2013. Sweden is among the best positioned developed economies in the world, with a highly productive workforce, a fiscal surplus and a stable banking system. While hampered by its minority status in the Swedish parliament, we expect the centre-right coalition government to steadily push forward with its economic liberalisation agenda.

Major Forecast Changes

Our real GDP growth forecast for 2012 has been raised to 1.1% from 0.5%, due to strong GDP data for the first half of the year. However, growth will slow anew as external headwinds hurt exports and dampen domestic sentiment. We have lowered our average consumer price inflation



forecast for 2012 to 1.0% from 1.3%.

Key Risk To Outlook

Downside Growth Risks From Global Crises: A European financial crisis on the back of a debt default by a eurozone member would leave Sweden´s open economy vulnerable to external demand shocks.

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Mike King
Phone: London: +44 (0) 203 086 8600

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