Sweden lifts growth forecast to 4.5 pct

[Beet]

The Swedish government has raised its growth forecast, saying the economy recovered faster than expected in the first half of 2010.

Finance Minister Anders Borg on Friday revised his forecast for 2010 Swedish GDP growth to 4.5 percent from the previously expected 3.3 percent.

The minister also upgraded his outlook for next year to 4 percent from 3.8 percent.

http://www.businessweek.com/ap/financialnews/D9HN9EAG4.htm

Conservative: European welfare states are collapsing because all welfare states are unsustainable.

Beet: No, it's actually all about the current account. [points to Germany, Sweden]. That's why countries with positive current accounts should stimulate more to help balance their relationship with their less stable brethern- who should of course implement austerity.

[Tender Branson]

Of course their growth rates are good, but one should note that Germany and Sweden's GDP declined more rapidely in 2009 than in other countries. Sweden even saw negative growth in 2008, when Austria`s economy still grew by 2%. So they have to grow fast to make up this lost ground. Here the economic recovery is a bit more delayed, with 2nd quarter GDP up by 0.9% compared with the earlier quarter, but many economists expect huge growth in the second half of 2010. So, GDP should be up by 2% this year and 3% next year. The recovery has also reached the labour market here, in July about 50.000 jobs were created, almost as much as in the US, which has 40-times a bigger population ...

[Gustaf]

Yeah, Sweden is export oriented and dependent on trade so we hurt more from the financial crisis than many other European countries. On the other hand, we had a good starting point.