The economy of Sweden contracted slightly in the first quarter and barely grew in the April-June period as its key export sector was hurt by sluggish overseas demand, particularly in Europe.
Borg cut his forecast for growth this year to 1.9 percent against a forecast made in July of 2.5 percent. For next year he cut his forecast to 3.0 percent from 3.1 percent.
With a view to bring public finances back to a targeted 1 percent surplus by 2018, Borg said he planned to raise taxes on the financial services and commercial property sectors if reelected and would hike duties on tobacco and alcohol.
Those measures will strengthen the budget by around 25 billion crowns (2.18 billion pounds).
