Country Report Sweden

Country Report

  • Sweden
  • Agriculture,
  • Automotive/Transport,
  • Chemicals/Pharma,
  • Construction,
  • Consumer Durables,
  • Electronics/ICT,
  • Financial Services,
  • Food,
  • Machines/Engineering,
  • Metals,
  • Paper,
  • Services,
  • Steel,
  • Textiles

1st June 2015

The Swedish economy is set to grow by 2.4 % in 2015, with industrial production rebounding after three years of decline. Household consumption and investment growth are expected to continue.

 

 

CR_Sweden_June_2015_overview

 

 

 

The insolvency environment

After two years of increases. Swedish business insolvencies decreased 7 % in 2014. It is expected that this improvement will continue in 2015.

 

 

CR_Sweden_business_insolvencies

 

 

Economic situation

 

Negative interest rates to combat deflation

 

CR_Sweden_real_GDP_growth

 

 

The Swedish economy is set to grow by 2.4 % in 2015, with industrial production rebounding after three years of decline. Both household consumption and investment growth are expected to continue, although at a lower rate than in 2014.

 

The main problem currently facing Sweden is deflation as the country is set to experience its third consecutive year of falling consumer prices. This is intensified by the appreciation of the kronor relative to the euro which accelerates deflation and makes exports more expensive and thus less competitive. Swedish authorities have voiced concerns that ongoing deflation could adversely affect the economic performance, as consumers have an incentive to delay purchases and consumption until prices fall further.

 

 

CR_Sweden_consumer_prices

 

In order to combat deflation and to weaken the currency the Swedish central bank has repeatedly lowered the repo rate since July 2014. In March 2015 the central bank extended its expansionary monetary policy by lowering the repo rate into negative territory (-0.25 %). Additionally it announced a quantitative easing program of buying 30 billion kronor worth of government bonds, which is intended to lower bond yields and to trigger more lending.

 

Disclaimer

Each publication available on or from our websites, such as, but not limited to webpages, reports, articles, publications, tips and helpful content, trading briefs, infographics, videos (each a “Publication”) is provided for information purposes only and is not intended as a recommen¬dation or advice as to particular transactions, investments or strategies in any way to any reader. Readers must make their own independent decisions, commercial or otherwise, regarding the information provided. While we have made every attempt to ensure that the information contained in any Publication has been obtained from reliable sources, Atradius is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information in any Publication is provided ’as is’, with no guarantee of completeness, accuracy, timeliness or of the results obtained from its use, and without warranty of any kind, express or implied. In no event will Atradius, its related partnerships or corporations, or the partners, agents or employees thereof, be liable to you or anyone else for any decision made or action taken in reliance on the information in any Publication, or for any loss of opportunity, loss of profit, loss of production, loss of business or indirect losses, special or similar damages of any kind, even if advised of the possibility of such losses or damages.