Sweden's Finance Minister Magdalena Andersson believes the country is entering an economic downturn, Swedish news SVT has reported. “We have seen that several of the risks we pointed to have increased during the summer, such as both the trade dispute between China and the U.S., and a no-deal Brexit,” Minister Andersson said. However, she added that Sweden is well-equipped to handle a cyclical slowdown. “We have created order and control in the state finances and have made sure to pay off real government debt so that we have muscles for all eventualities,” she said, adding: “My assessment is that it would be unwise to pursue a sharply leaner policy in a situation where we see a cyclical slowdown”. “We have estimated that in this budget we have a reform space of about SEK 25 billion.” Politicians who attended Minister Andersson's update on the Swedish economy expressed their concern about what the downturn will mean for social welfare and business prospects.
- Xinhua -