Sweden's GDP is projected to increase by 1.1 per cent this year and 1.6 per cent next year. Unemployment is projected to rise from 6.8 per cent last year to 7.0 per cent this year and next.

Last fall, in connection with the budget bill, the government projected GDP growth of 1.4 percent this year and 1.8 percent next year. Unemployment was estimated to rise from 6.3 per cent last year to 6.4 per cent this year and next.

However, there will be no dramatic slowdown that was talked about last fall, according to Andersson.

No big savings packages

She points to increased barriers to trade, which are hitting investment globally, and adds that there is great uncertainty in the forecast.

- We can meet this slowdown without large savings packages, she says.

"Although it is a limited agreement, it is a welcome first step," says Magdalena Andersson about the partial trade agreement reached between the US and China after two years of trade war.

She also shows a picture showing how the trade war, with increased tariffs, has hit investment growth globally, dampened trade and increased uncertainty.

Germany a problem

For the Swedish part, the German industrial weakness is particularly problematic, according to the finance minister.

- The confidence indicators in Germany do not look bright if you say so.

She adds that the risk of a severe Brexit has diminished and that most points to an orderly exit from the EU on 31 January for the UK, while the Iran-US conflict risks having a major impact on the market.

- Another risk is that we get a hard landing in China, she says.

However, she estimates that this risk has diminished somewhat.

Andersson adds that it is obvious that resources for the municipal sector are what will be needed in the future.

However, the government expects a smaller surplus in central government finances than last autumn. Now, public net lending is projected to reach 0.1 per cent of GDP this year and next. In the fall, surplus landings were estimated at 0.3 and 0.4 percent, respectively.