Companies Expect More Layoffs to Come

Swedish Enterprise signs a new economic forecast, painting a sluggish picture of the Swedish economy where unemployment persists.

Economic growth, measured as GDP, only increases by a moderate 0.9 percent this year, but gains momentum next year, 2.3 percent, partly due to lower interest rates. Unemployment, however, remains at historically high 8.4 percent even next year, seen as an average over the year.

The business organization takes the pulse of its member companies on an ongoing basis.

"Our companies clearly testify to a weak economy that is only slowly recovering. Moreover, the risk of layoffs and dismissals remains high in the latest survey of the panel," says Swedish Enterprise's chief economist Sven-Olov Daunfeldt in a written comment.