Stockholm, Sweden (4E) – Sweden’s lowered its economic outlook and consumer price forecasts, according to a Finance Ministry report released Saturday.
The country’s gross domestic product (GDP) is now expected to expand just 1.9 percent this year, sharply lower compared with the 2.7 percent growth initially estimated last month. Growth forecast for 2015 was also cut to 3 percent from the previous estimate of 3.3 percent.
Annual average consumer prices were also estimate to drop 0.1 percent in 2014 from a prior forecast of a 0.2 percent gain, the ministry said. Inflation rate for 2015 is forecast at 1.1 percent, down from initial estimate of 1.6 percent.
At the same time, the government raised the estimate for this year’s unemployment rate to 7.9 percent from a previous view of 7.7 percent.
The country’s economy bounced back to growth in the second quarter, helped by gains in household consumption, but the 0.2 percent rise was smaller than economists had expected.