Swedish economy approaches cyclical balance from a boom. Employment growth can be weaker in the future, leading to weaker growth of the real tax base. The number of young and elderly will increase more rapidly than people of working age. This will lead to difficulties concerning the financing. And even if those problems are solved it will be difficult to cope with staffing. This will make it important to succeed in recruiting new skills and retaining existing ones. Overall, municipalities are in a strong starting position financially, but tougher times are coming. County councils have a poorer starting position for meeting their future challenges, which are largely linked to demography.
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