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Swedish government sees economy shrinking 4.6% this year

STOCKHOLM, Aug 27 (Reuters) - Sweden’s economy will contract around 4.6% this year, Finance Minister Magdalena Andersson said on Thursday in a fresh forecast.

“We have seen some recovery. The economic situation is looking a little brighter compared to our assessment in June,” Andersson told a news conference.

Sweden is seen hit less hard by the coronavirus crisis than many other European countries.

The government forecast in June that the economy would shrink around 6% this year, but data has since pointed to a quicker recovery than widely expected.

It now sees a public sector fiscal deficit of 5.6% of GDP, compared to the June forecast of a 7.8% deficit.

Reporting by Simon Johnson and Johan Ahlander, editing by Anna Ringstrom

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