Swedish government sees economy shrinking 4.6% this year

Sweden's economy will contract around 4.6% this year, Finance Minister Magdalena Andersson said on Thursday in a fresh forecast. The economic situation is looking a little brighter compared to our assessment in June," Andersson told a news conference. Sweden is seen hit less hard by the coronavirus crisis than many other European countries.

Sweden's economy will contract around 4.6% this year, Finance Minister Magdalena Andersson said on Thursday in a fresh forecast. "We have seen some recovery. The economic situation is looking a little brighter compared to our assessment in June," Andersson told a news conference.

Sweden is seen hit less hard by the coronavirus crisis than many other European countries. The government forecast in June that the economy would shrink around 6% this year, but data has since pointed to a quicker recovery than widely expected.

It now sees a public sector fiscal deficit of 5.6% of GDP, compared to the June forecast of a 7.8% deficit.