Sweden raised its estimate for the government’s borrowing need in 2012 as the largest Nordic economy struggles to avert a recession amid growing unemployment.
The National Debt Office increased its estimate for sales of nominal bonds this year to 50 billion kronor ($7.5 billion) from the 35 billion kronor predicted in October, according to a statement published today in Stockholm. The agency also said it expects to issue 53 billion kronor in nominal bonds in 2013, 20 billion kronor more than estimated in October.
“Weak domestic demand and weak demand in our key export markets are reducing growth prospects this year and unemployment is rising,” the agency said. “This affects central government finances through reduced tax revenues and increased labor market expenditure.”
The largest Nordic economy shrank 1.1 percent in the fourth quarter, its first contraction since 2009, as the European debt crisis weighed on exports and companies cut jobs. Unemployment (SWUERATE) will average 7.7 percent this year, up from 7.5 percent last year, the central bank predicted last month as it cut interest rates for a second consecutive meeting.
Read more at : http://www.bloomberg.com/news/2012-03-05/sweden-to-raise-borrowing-as-recession-looms-unemployment-grows.html
The National Debt Office increased its estimate for sales of nominal bonds this year to 50 billion kronor ($7.5 billion) from the 35 billion kronor predicted in October, according to a statement published today in Stockholm. The agency also said it expects to issue 53 billion kronor in nominal bonds in 2013, 20 billion kronor more than estimated in October.
“Weak domestic demand and weak demand in our key export markets are reducing growth prospects this year and unemployment is rising,” the agency said. “This affects central government finances through reduced tax revenues and increased labor market expenditure.”
The largest Nordic economy shrank 1.1 percent in the fourth quarter, its first contraction since 2009, as the European debt crisis weighed on exports and companies cut jobs. Unemployment (SWUERATE) will average 7.7 percent this year, up from 7.5 percent last year, the central bank predicted last month as it cut interest rates for a second consecutive meeting.
Read more at : http://www.bloomberg.com/news/2012-03-05/sweden-to-raise-borrowing-as-recession-looms-unemployment-grows.html
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