By Charles Duxbury 
 

STOCKHOLM--Sweden's finance minister came under renewed pressure Friday to lower his upbeat growth forecasts for the Swedish economy, as the outlook for exports darkens due to the economic slowdown in the euro zone.

Magdalena Andersson, the economic spokeswoman for Sweden's largest opposition party, the Social Democrats, urged Finance Minister Anders Borg to submit an updated and "realistic" view of the Swedish economy to lawmakers for review.

Mr. Borg should then update his policy proposals for 2013 to take into account the worsening outlook, Ms. Andersson wrote in an opinion piece in Swedish daily Dagens Nyheter.

The finance ministry's forecasts are important because they form the basis of Sweden's budget for 2013. In a September proposal for that budget, Mr. Borg promised 23 billion kronor ($3.4 billion) in extra spending, which was more than had been expected.

These plans for extra spending may have to be trimmed now with output growth in Sweden now seemingly grinding to a halt. Industrial production fell by over 4% on the month in September.

Half of Sweden's gross domestic product comes from exports and with about 35% of those exports going to the troubled euro zone Sweden is sensitive to the slowdown there. Figures published Thursday showed the common currency bloc fell into a recession in the third quarter. The euro zone hasn't grown for four straight quarters and the latest decline in GDP was the second straight drop.

When presenting his September budget proposals, Mr. Borg said he thought the Swedish economy would grow 1.6% this year and 2.7% next year.

That is more upbeat than Sweden's central bank which now forecasts output will grow just 0.9% this year and 1.8% in 2013.

"Even when the budget was presented the government was criticised hard for its over-optimistic view of the Swedish economy," Ms. Andersson wrote. "Now parliament is set to make a decision on a budget when the premises for it lack relevance. This is not responsible," she wrote.

Since September a number of large Swedish companies, including telecom-equipment maker Ericsson (ERIC), have announced job cuts in Sweden in a bid to ride out the global economic slowdown.

Unemployment in Sweden is on an upward trend and could top 8% in the months ahead, according to analysts.

SEB bank economist Robert Bergqvist said the finance minister should at least halve his forecasts for economic growth for this year and next even though it would likely be a knock to the government's credibility to do so.

Mr. Bergqvist said the finance minister will lower his forecasts by next Tuesday at the latest. Mr. Borg is due to speak at an event in Stockholm about the outlook for the economy Tuesday.

Mr. Borg said recently that even when he presented the budget proposals he signaled that the forecasts were subject to "downside risks". He acknowledged that Sweden is now experiencing a "very sharp slowdown."

The reason why he hasn't rushed to revise down his forecasts since September is because the slowdown had been of a type which wouldn't have a serious effect on his budget planning in the short term, he said.

"What has happened so far has been mainly centered on things like poor export numbers, which don't hit public finances so hard," he said.

The finance minister said last Friday he would wait until next year before issuing any new economic forecasts.

-Write to Charles Duxbury at charles.duxbury@dowjones.com