Tighter budgets as economy strengthens
The Swedish economy will grow healthily in the coming years, driven by export growth and higher household consumption. As the economy strengthens, fiscal policy will need to be tightened to bring public finances into balance. This will mean spending cuts and/or tax increases in the coming years, even with a switch to a balanced-budget target. Such are the results of the latest forecast from the National Institute of Economic Research (NIER), published today.The Swedish economy will continue to recover, with GDP growing by around 3 per cent both this year and next. The biggest contribution