Sweden; Selected Issues

This 2013 Article IV Consultation examines the performance of Sweden’s fiscal policies to counter effects of global financial crisis. Economic growth in Sweden has been moderate since global financial crisis of 2008–2009. The IMF report posits that with potential growth moderately weaker and the natural rate of unemployment to remain elevated, policies should focus on growth-enhancing reforms, especially in the labor market. It suggests that good policies that secure the soundness of Swedish international banking groups are expected to benefit borrowers not only in Sweden but across the region.