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Chill winds in the hot seat

Article Abstract:

Sweden has reduced public spending inorder to tackle the rising level of public debt. Goran Persson, prime minister of Sweden, faces two key economic challenges, high unemployment in Sweden, and the involvement of Sweden in planned European monetary union. The budget deficit has been reduced and should reach zero for 1998, moving to a budget surplus after that year. Economic growth is forecast at 2% for 1997 and 3% for 1998. Domestic demand has been weak, and this has contributed to high unemployment levels.

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Perssonal services

Article Abstract:

The Swedish Social Democratic Party (SDP) has achieved low interest rates, falling unemployment, steady growth and low inflation, and has controlled public spending. The budget deficit grew to 12% of the country's gross domestic product during the early 1990s, but tighter fiscal policy led to a budget surplus for 1998. Sweden has not joined European monetary union and this has had a number of effects, such as higher interest rates than if Sweden had been a member, and more pressure on the currency.

Fiscal policy

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The economics of the polls

Article Abstract:

Sweden has increased taxes and reduced government spending and has undergone an economic recovery. Inflation and interest rates have dropped and disposable incomes look set to rise in 1998 following a previous fall for three consecutive years. The government forecasts 3.1% gross domestic product growth for 1998, though there is concern that growth is dependent on exports, so the Swedish economy could be hit by the Asian financial crisis and its impact on exports.

Gross Domestic Product

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