Sweden lowers economic growth outlook for 2012

Associated Press + More

STOCKHOLM (AP) — Sweden's government has cut its economic outlook for 2012, saying problems in the eurozone are also affecting the Nordic country.

The center-right government on Monday lowered its expectation for 2012 gross domestic product growth to 0.4 percent from 1.3 percent previously. It expects GDP growth to recover to 3.3 percent in 2013.

Finance Minister Anders Borg said the government is focusing on countering the effects of the debt crisis and reducing unemployment, which is forecast at 7.8 percent in 2012 and 7.7 percent in 2013.

Long-term, the government wants to cut income taxes further, but Borg wouldn't specify when. He cautioned that the economic situation could deteriorate further and said opportunities for economic reforms are currently limited.

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.