But there are plenty of worries and risks – not least in the Middle East.
Among other things, the Minister of Finance points out this weekend’s Iranian robot and drone attack against Israel and a potential retaliatory attack from Israel as a major risk factor for the Swedish economy.
What has happened in the last 24 hours can affect everything from oil prices to freight prices and other things, causing us to get a new supply shock and inflation not coming down as we had hoped. New supply disruptions must be included in your risk picture and be prepared for, says Elisabeth Svantesson at a press conference about the spring budget. German economy risk factor
It is not only the increasingly difficult geopolitical situation in the world that worries.
Even though we now paint a fairly positive picture going forward, there are many things in our environment that can affect the Swedish economy in different ways. For example, that the demand, the pressure and the economic development in other countries – on which we are very dependent – are actually getting worse, says Svantesson.
The German economy is singled out as a risk factor for the Swedish outlook.
This is because they have structural problems and problems with their automotive industry and other parts that make it tough. They are also in turn dependent on the Chinese economy. They are very exposed to China. And not everything has gone smoothly there either, so to speak. That’s something to keep an eye on, says Svantesson.”I see it as a strength”
She highlights the US as a cautionary example, where inflation and the labor market have surprised on the upside for some time. This has meant that both the US central bank and the market have begun to hesitate before lowering the key interest rate in the US this summer.
Although the Swedish and American inflation partly have different causes, it shows that it is not obvious that it is not just a straight path downward, says Svantesson.
Loan-financed investments in the spring budget mean that the government is now expecting an increased budget deficit. But there is room for borrowing, according to the finance minister.
Sweden has a low national debt. Some seem to think it’s a problem. I see it as a strength, says Svantesson.
