Stockholm - The Swedish government has revised its economic outlook and does not rule out recession in one scenario, Finance Minister Anders Borg said Monday.
The two main scenarios suggest that growth will either be flat next year or, in the worst case, shrink 1.2 per cent.
"The global financial crisis is the worst since the depression (in the 1930s) and the Swedish financial markets have their worst crisis since the 1990s," Borg told reporters.
According to one of the finance ministry scenarios, the crisis will worsen with falling prices and export demand. In combination with the credit crunch, the Swedish economy will grow just 0.1 per cent in 2009, and 2.0 per cent in 2010.