Sweden is on the right course, according to the Minister of Finance. Despite war and uncertainty in the world - not least an unpredictable American president - the Swedish economy is strong.
My absolute message to the Swede who is worried is that Sweden is stable, and we have weathered difficult times before, Svantesson says.
The fragile ceasefire in the war in Iran, traffic in the Strait of Hormuz and the effects on energy prices are some of the most tangible uncertainties right now.
If this continues and is prolonged, it will have major effects, Svantesson says.
Increase consumption
For the recovery to gain momentum at home, the government needs to instill confidence in households, Svantesson believes. More than half of the spring budget's 7.7 billion SEK in investments go to lowering taxes on gasoline and diesel and providing temporary electricity support to households.
We want households to shop, go to the baker, get a haircut, maybe take a trip. It's about getting the wheels moving, Svantesson says.
For the individual, the tax cut does not provide much - approximately 120 kronor in total for someone who drives a diesel car 1,400 km per year and 230 kronor for someone who drives a gasoline car and 900 km per year.
Is it wise to spend so much money on this?
I wouldn't have done it if I didn't think it was wise, Svantesson says.
“Lazy governments”
The government has been criticized for borrowing for unfunded investments. However, Svantesson believes that the national debt is low and the economy is strong. Her goal is to get back to balance and she warns that most of the room for reform in the next term is mortgaged, so investments must be financed.
However, raising taxes is not an option for Svantesson.
It's lazy governments that raise taxes, Svantesson says.
The government is not releasing a new economic forecast in connection with the spring budget. But the coming period could be testing for the Swedish economy, the government notes.
The latest forecast from March 11 pointed to GDP growth of 2.8 percent this year and 2.5 percent next year.
Unemployment was then estimated to fall to 8.4 percent on average this year, from 8.8 percent last year, and then drop to 7.8 percent in 2027.
