Swedish finances improve, pave way for more government spending

Stockholm: Sweden’s minority government will run a surplus of around 15 billion crowns (Dh6.1 billion, $1.67 billion) this year, giving it room to spend more money and improve its prospects before an election in 2018. A forecast from the National Financial Management Authority (ESV) on Thursday showed central and local government and the pension system running a surplus of 0.3 per cent of gross domestic product this year and 0.5 per cent next year. The surplus was 0.9 per cent of GDP in 2016. “There will be more money for the economically disadvantaged, the environment and education — the usual targets,” said Knut Hallberg, an economist at Swedbank.