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Economic crisis reaching Sweden

What do you think?

wondering
post 7.Nov.2012, 04:54 PM
Post #1
Joined: 3.Oct.2011

Anyone seen the layoffs from Ericsson, Husqvarna, Atlas Copco, Telia and so on ?

Looks like the economic crisis has reached Sweden.

What do you think?

A cold hard slog ahead for Sweden? Could it be as bad as 2008 even though the politicians say no ?
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Essingen
post 7.Nov.2012, 05:10 PM
Post #2
Joined: 2.Nov.2008

Absolutely. Very worrying. The Swedish economy is absolutely dependent on both adults in a household working and the sort of layoffs we are now hearing about are very serious.
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skogsbo
post 7.Nov.2012, 05:44 PM
Post #3
Joined: 20.Sep.2011

Swedens needs to export, with Europe dying, if it doesn't find new markets in the east, it will slowly die with it. The west is done, the key to survival is establishing eastern and south American trade, as the core trade.
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wondering
post 7.Nov.2012, 06:03 PM
Post #4
Joined: 3.Oct.2011

The problem is that Sweden is exporting but I think Sweden's major exports go to Europe (Correct me if I am wrong).

Based on price I don't think how Sweden can compete by exporting to Third World countries.

The problem is that the companies I listed are all very different sectors so it is not just limited to certain fields.

What worries me even more is that the Government didn't seem very concerned about it earlier. They just basked in the glow that Sweden did very well over the last quarter but really I think that now it's going to get quite difficult moving forward.
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skogsbo
post 7.Nov.2012, 06:13 PM
Post #5
Joined: 20.Sep.2011

They need to open factories in those countries, but many of their components are already made there. They need to make cheap own brand versions of their products for the overseas market, no one in China will pay EU prices for a husqvarna product. Sell on volume, not on price.
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wondering
post 7.Nov.2012, 06:18 PM
Post #6
Joined: 3.Oct.2011

The thing is that they already have factories there. In the case of Atlas, Ericsson etc.. they are already located in countries where they are paying less.

The problem is that it is easier to cut costs in Sweden by letting labor go as labor in Sweden is so expensive. So first they do knowledge transfer to employees in India, China etc etc....then after some years goodbye employee in Sweden...

And Shareholders here is a big chunk of money as dividend mellow.gif
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byke
post 7.Nov.2012, 06:59 PM
Post #7
Location: Europe
Joined: 28.Oct.2008

Don't be silly, everything is fine in Sweden.
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Migga
post 7.Nov.2012, 07:12 PM
Post #8
Joined: 26.Jul.2011

Sweden is an export country so when the rest of the world is in crisis it will affect Sweden. The biggest markets in the future will be Africa and Asia, this will be critical for Sweden to continue exporting. But as for now it would be better to fire people and ride out the storm in the rest of the world.
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elk200
post 7.Nov.2012, 10:36 PM
Post #9
Joined: 11.Apr.2012

Sweden exports high-quality products, but it suffers from the strength of the SEK against all major currencies, making Swedish products very expensive for international buyers. At the same time, Riksbanken cannot really push down the interest rate much more (to weaken the SEK), as this could cause/increase internal problems. Depending on the development of the SEK I would actually not be too surprised if Riksbanken decided on an artificial pegging against the EUR next year, like the Swiss central bank did recently. Other than the currency issues, I believe Sweden should be surpassing any international economic crisis relatively mildly.
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jostein
post 8.Nov.2012, 12:44 AM
Post #10
Joined: 22.Mar.2011

With such a steep slope, this is gonna be quite a ride!
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skogsbo
post 8.Nov.2012, 08:04 AM
Post #11
Joined: 20.Sep.2011

QUOTE (wondering @ 7.Nov.2012, 06:18 PM) *
The problem is that it is easier to cut costs in Sweden by letting labor go as labor in Sweden is so expensive. So first they do knowledge transfer to employees in India, Chin ... (show full quote)

in the long term the west will need to work hard to hold on R&D, marketing etc. manufacturing and assembly too will move away. It's our own fault, everyone wants to have a phone, laptop etc. but at a cheap price. Western companies solved this for us, but also took the work away from us at the same time. Cake and eat it scenario.

QUOTE (byke @ 7.Nov.2012, 06:59 PM) *
Don't be silly, everything is fine in Sweden.

Not just here, the West in general, the Ex 3rd world countries grow and we are struggling to have any growth, but this will be eaten up by debt for the next decade.

QUOTE (Migga @ 7.Nov.2012, 07:12 PM) *
The biggest markets in the future will be Africa and Asia, this will be critical for Sweden to continue exporting. But as for now it would be better to fire people and ride ou ... (show full quote)

|Sweden or the EU won't be exporting much though in 20-30yrs time, Africa/Asia/S Amer. will trade directly with each other, it's cheaper, they'll have the education, the technology and they already have the manufacturing & assembly work force in place.

What percentage of Uni students are none EU/USA? We are educating and training our future competitors.

QUOTE (elk200 @ 7.Nov.2012, 10:36 PM) *
I believe Sweden should be surpassing any international economic crisis relatively mildly.

No chance. There isn't the monetary and natural resources available globally for everyone to be a booming prosperous nation.

Whilst fighting the fight, we also need to have a plan B, securing food, energy and health resources for the time when we drift back down the global pecking order.
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wondering
post 8.Nov.2012, 08:54 AM
Post #12
Joined: 3.Oct.2011

http://www.dn.se/ekonomi/nu-okar-varslen

50000 redundancies so far this year
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byke
post 8.Nov.2012, 09:09 AM
Post #13
Location: Europe
Joined: 28.Oct.2008

... And the highest exodus of Swedes through emigration last year, since records began.

#Aint no sandwich whens she's gone.
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skogsbo
post 8.Nov.2012, 09:59 AM
Post #14
Joined: 20.Sep.2011

QUOTE (byke @ 8.Nov.2012, 09:09 AM) *
... And the highest exodus of Swedes through emigration last year, since records began.

I know you try to fit it into most threads. wink.gif

Curiously, is that growth by volume or % of population, Swedish born or nationalised?

If so, where are they going, why, age bracket? There could well be a different story behind the motives.

How many return ever year?

I think the UK currently has record British emmigration at the moment of the British qualified working/middle class. So I'm not sure what your statement actually means or proves. Merely that the global workforce is more mobile than ever before. I think it is likely to rise year on year.
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Yorkshireman
post 8.Nov.2012, 10:11 AM
Post #15
Joined: 22.Nov.2011

QUOTE (byke @ 8.Nov.2012, 09:09 AM) *
... And the highest exodus of Swedes through emigration last year, since records began.. #Aint no sandwich whens she's gone.

...and the highest number of Swedish Citizens returning to Sweden. wink.gif
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