The global economic slowdown is starting to hit Sweden and could put a dent in planned reforms by the country’s rightwing government ahead of the next general election in 2010.

In his spring mini-budget announced on Tuesday, Anders Borg, finance minister, downgraded growth forecasts to 2.1 per cent this year and 1.8 per cent in 2009 from February’s estimate of 2.3 per cent this year and 2.2 per cent next.