Boston, MA -- (SBWIRE) -- 02/01/2013 -- Core Views

Sweden's status as an open trade-oriented economy means that the ongoing European economic crisis poses significant downside risks to Swedish growth.

Sweden is among the best positioned developed economies in the world, with a highly productive workforce, a fiscal surplus and a stable banking system.

Major Forecast Changes

We now expect 1.2% real GDP growth in 2013, down from 2.0% previously, owing primarily to concerns over external demand. Risks remain predominantly to the downside.

We have revised down our outlook for the Riksbank repo rate. Our end-2012 forecast has been revised down to 1.00% from 1.25%, and our end-2013 forecast is now 0.75% (from 1.50%).

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Key Risks To Outlook

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