The government is optimistic about the economy – Östgöta Correspondent

We had a strong forecast in December and there have been many assessments that confirms the impression that it is going very strong in the Swedish economy right now, says Finance Minister Magdalena Andersson (S) to TT before his Spring Fiscal Policy Bill spent on Parliamentary table today.

wide growth

Her forecast of a very broad Swedish growth confirms the picture of a boom in the autumn NIER recently gave.

Partly exports go very well, including motor vehicles. It is going very well for Volvo. But we see at the same time that investment increases in housing and in services, she says.

On top of this we should according to the finance minister post lift for both the household and the procurators consumption, particularly in housing investment.

on the expenditure side, according to Andersson “is essential to tackle the areas where cost increases”.

Among other things, it is about costs for asylum seekers and integration, which according to the Swedish Migration Board and the Public Employment Service is expected to increase by 35 billion this year compared with last year.

the next year, rising costs by a further 11 billion and harbors a total of 79 billion. Government expenditure is expected to rise in other areas, such as health insurance.

But, look at the migration is a temporary increase in cost. The costs will decrease over time. It’s a temporary hump, in that it came very many last year, says Andersson.

finances strengthened

And she does not give the impression that she is concerned about government finances:

We have more than halved the deficit and finances strengthened the even forward, despite the increased costs.

the unemployment rate is expected to drop to 6.3 percent in 2017, according a forecast presented last week. Although from 2018 – when many newcomers get into the labor market – unemployment is assumed to increase slightly again in 2020, the year the government promised the EU’s lowest unemployment figure is believed to be at 6.6 percent. It can be compared with Germany’s 4.3 percent.

Tax increases and stronger growth in the economy means that state revenues will grow this year and next year, according to the National Financial Management Authority (ESV) April forecast. The state budget assumed join plus the coming years, according to ESV, but that was before the government promised municipalities increased central government grants by ten billion next year.

ESV expect that the public finances, that is, both the state and municipalities, reaching a small surplus in 2019. the Riksdag decided first goal of a surplus of one percent of the GDP can not be reached, according to the ESV. The red-green government wants to replace the surplus target with a balansmål.