SHARE
COPY LINK

ECONOMY

Thailand in favour of Sweden’s Gripen

"It seems positive," said Defence Minister Leni Björklund following talks with Thai officers and political leaders over Thailand’s possible procurement of the JAS 39 Gripen fighter aircraft.

The Defence Minister, who has been on a one-week visit to Singapore and Thailand, also told TT that she sees “a huge amount of interest in the Gripen, which is something the industry (Saab) should exploit”.

Björklund has held talks in Singapore over continued naval co-operation. Singapore has previously purchased four second-hand Swedish submarines and crew have received training in Sweden. With the forthcoming defence cuts in Sweden, several Swedish submarines are likely to be redundant. The Defence Minister sees that there is opportunity to discuss new business, should Singapore decide to extend its fleet, reported SvD.

Ericsson suspected of paying bribes…

Telecom equipment manufacturer Ericsson is suspected of having paid out 1 billion crowns in bribes to Russia, reported DI.

The payment was apparently made from Ericsson’s EMK company in Switzerland, via Austria, to Russia during the autumn of 1999. At the end of the Nineties, Ericsson had problems breaking into the Russian market, which was judged to have huge growth potential.

…and wins order from 3

Ericsson has won an order to supply radio and transmission equipment and related services in Sweden, Norway and Denmark from 3G operator 3. The order is worth some 2.55 billion crowns.

Nordic Capital acquires Falck

Swedish Nordic Capital is to acquire Danish rescue services company Falck A/S for approximately 6 billion crowns. Nordic Capital has plans to expand Falck’s unit for roadside breakdown assistance in Sweden.

Falck A/S is a hive-off from Group 4 Falck and went public in July. The company is expected to post turnover of 5.8 billion crowns this year.

Clothing cheaper next year

Clothes prices are expected to fall by as much as 15-20 per cent next year when the EU abolishes import quotas on clothing and shoes. Imports from China and India are expected to rise drastically.

Consumer debt slowly declining

Finaninspektionen (the Swedish Financial Supervisory Authority) has reported that household debt rose by 30 billion crowns in Q3, which may be compared with 45 billion crowns in Q2.

During the first nine months of the year, households’ financial assets rose by 2.1 per cent to total of 2,447 billion crowns. During the corresponding period in 2003, households’ financial assets rose by 7.6 per cent, mainly as the result of a stronger market upswing.

Sources: Dagens Nyheter, Svenska Dagbladet

Supplied by BECK TRANSLATIONS.

With an experienced team of in-house translators, Beck specialises in translating from Swedish into English in such areas as finance and economics, marketing and advertising, biotechnology, the environment, quality, and personnel & administration.

ECONOMY

‘Tougher times’: Sweden’s economy to slow next year

Consumers in Sweden are set to crimp spending over the rest of the year, pushing the country into an economic slowdown, Sweden's official economic forecaster has warned in its latest prognosis.

'Tougher times': Sweden's economy to slow next year

A combination of record high energy prices over the winter, rising interest rates, and inflation at around 10 percent, is set to hit household spending power over the autumn and winter, leading to lower sales for businesses and dragging economic growth down to just 0.5 percent next year. This is down from the 1.2 percent the institute had forecast for 2023 in its spring forecast. 

“I don’t want to be alarmist,” Ylva Hedén Westerdahl, forecasting head at the Swedish National Institute of Economic Research, said at a press conference announcing the new forecast. “We don’t expect the sort of economic slowdown that we saw during the financial crisis or the pandemic, where unemployment rose much more. But having said that, people who don’t have a job will find it tougher to enter the labour market.” 

She said that a shortage of gas in Europe over the winter, will push electricity prices in Sweden to twice the levels seen last winter, while the core interest rate set by Sweden’s Riksbank is set to rise to two percent. 

As a result, Sweden’s unemployment rate will rise slightly to 7.8 percent next year, from 7.7 percent in 2022, which is 0.3 percentage points higher than the institute had previously forecast. 

On the plus side, Westerdahl said that she expected the Riksbank’s increases in interest rates this year and next year would succeed in getting inflation rates in Sweden under control. 

“We expect a steep decline in inflation which is going to return to below two percent by the end of 2023,” she said. “That depends on whether electricity prices fall after the winter, but even other prices are not going to rise as quickly.” 

After the press conference, Sweden’s finance minister, Mikael Damberg, said he broadly agreed with the prognosis. 

“I’ve said previously that we are on the way into tougher times, and that is what the institute confirms,” he told Sweden’s state broadcaster SVT. “There’s somewhat higher growth this year, at the same time as fairly high inflation which will hit many households and make it tougher to live.”

Damberg called on Sweden’s political parties to avoid making high-spending promises in the election campaign, warning that these risked driving up inflation. 

“What’s important in this situation is that we don’t get irresponsible when it comes to economic policy,” he said. “Because when parties make promises left, right and centre, it risks driving up inflation and interest rates even more, so Swedish households have an even tougher time. Right now, it’s important to prioritise.” 

 The call 

Sverige är på väg mot lågkonjunktur enligt Konjunkturinstitutets (KI) senaste prognos. Enligt finansminster Mikael Damberg (S) är det därför viktigt att Sverige sköter sin ekonomi ansvarsfullt och vågar prioritera.

– Jag tror att alla partier behöver vara lite återhållsamma och inte lova för mycket, säger han.

Mikael Damberg tycker att KI tecknar en realistisk bild av Sveriges ekonomiska verklighet.

– Jag har sagt tidigare att vi går mot tuffare tider och det är väl det som KI bekräftar. Något högre tillväxt i år men sämre tillväxtförutsättningar nästa år samt fortsatt ganska hög inflation som slår mot många hushåll och gör det tuffare att leva, säger han.

Och vad vill regeringen göra åt det?

– Det är viktigt att vi i det här läget inte är ansvarslösa i den ekonomiska politiken. För när partier lovar vitt och brett till allt riskerar vi att driva upp inflationen, öka räntan ytterligare och svenska hushåll får det svårare. Nu måste man våga prioritera.

Se intervjun med Damberg om konjunkturläget klippet ovan.

“Electricity prices are going to be twice as high as last winter,” said 

Elpriserna kommer att bli dubbelt så höga som förra vintern, säger Ylva Hedén Westerdahl, chef för Konjunkturinstitutets prognosavdelning, på en pressträff.
Den lågkonjunktur som KI ser framför sig kallar hon trots det för en mjuklandning. Den handlar främst om att människor kommer att ha mindre pengar att konsumera.

“Brist på gas i Europa gör att energipriserna ser ut att bli rekordhöga under vintern”, skriver KI, och ser att inflationen kommer att närma sig 10 procent.

Deras prognos för styrräntan är att den ligger på 2 procent vid årsslutet, vilket gör att inflationen faller tillbaka snabbt under nästa år och Riksbanken låter då räntan ligga still.

KI tillägger att de offentliga finanserna är fortsatt starka och de bedömer att det finns ett budgetutrymme på runt 120 miljarder kronor för de kommande fyra åren.

Vad gäller BNP spår KI en blygsam tillväxt på 0,5 procent nästa år – en nedskrivning från tidigare 1,2 procent.

Prognosen för arbetslösheten under 2023 är 7,8 procent, 0,3 procentenheter högre än tidigare prognos.

Fredrik Fahlman/TT
Johanna Ekström/TT

SHOW COMMENTS