Sweden's economy

Sweden's economy to recover from financial crisis next year

Sweden's economy will recover from the impact of the global financial crisis starting from next year, according to a draft Autumn budget plan released on Monday.

Sweden's gross domestic product (GDP) is expected to score a 0.6-percent growth in 2010, 0.2 percent higher than the forecast in Spring this year.

The country's GDP is expected to increase by 3.1 percent in 2011 and 3.8 percent in 2012 respectively, said a statement of the Ministry of Finance.

The budget contains new measures to tackle the recession following the financial crisis. A total of 32 billion kronor (about 4.4 billion U.S. dollars) will be used for stimulus efforts for 2010 and a further 24 billion kronor (3.3 billion dollars) for2011.

The Swedish economy, highly dependent on exports, has been severely hampered by the global economic downturn. It is estimated that Sweden's GDP will fall by 5.2 percent during 2009, the sharpest drop since the World War II, said the statement.

The government projects jobless rate to rise to 11.4 percent next year and to 11.6 percent in 2011.

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