I hate to be right, sometimes

This blog has argued for quite some time that the financial crisis would hit Sweden far harder than most Swedish economists and journalists anticipated. Already in November of last year, I proposed a stimulus package of at least 3% of GDP. This would be roughly 100 billion Swedish Krona (SEK).

Today Danske Bank argues in a report that Sweden’s economic situation is indeed in serious trouble. Unemployment will soar to 12% by 2010, and GDP is likely to contract by 4,6% this year. These are indeed appalling figures, and will probably bring about dangerous deflation.

It may be too late to avoid a deep and painful recession, but it is not to late to avoid a depression. The government must act forecefully. Now.

Publicerad måndag, mars 23rd, 2009 i ekonomi.

Vad tycker du?