Sweden Says Brexit, Trade Tensions May Limit Scope for Spending



Amanda Billner | Bloomberg

Sweden’s government said risks stemming from the U.K.’s efforts to leave the European Union and global trade tensions are clouding its economic outlook, as it lowered growth and surplus forecasts for the years ahead.

The center-left coalition ruling Scandinavia’s biggest economy said economic indicators show that growth will slow during 2019, making it more difficult to set ambitious budget goals.

“The scope for reforms is non-existent in the coming spring,” in part due to parliament’s decision to cut taxes, Finance Minister Magdalena Andersson said at a press conference in Stockholm on Monday. The Social Democrat-led coalition of which Andersson is a part has been under pressure to increase spending and cut taxes further, amid record-low debt levels.

[Read more here.]