Sweden has 'the wrong kind of growth'
Sweden has the "wrong type of growth" according to a new report from think tank SNS.
While the Swedish manufacturing sector has world-class productivity growth, the service sector is not keeping up, the report says. This is a problem for employment prospects, it continues, saying that the service sector is expected to be the source of most new jobs.
"The weak productivity in the service sector could therefore damage the Swedish economy's ability to grow in the long term, with lower profits and lower wages in real terms," the organization writes in a press release.
SNS calls for measures to make it easier for small and medium-sized companies to spend on research and development, for continued reduction in state control of industry, and reductions in marginal tax rates to 50 percent.
The organization also calls for increased competition in the service sector and the introduction of competing companies to provide education and healthcare.
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While the Swedish manufacturing sector has world-class productivity growth, the service sector is not keeping up, the report says. This is a problem for employment prospects, it continues, saying that the service sector is expected to be the source of most new jobs.
"The weak productivity in the service sector could therefore damage the Swedish economy's ability to grow in the long term, with lower profits and lower wages in real terms," the organization writes in a press release.
SNS calls for measures to make it easier for small and medium-sized companies to spend on research and development, for continued reduction in state control of industry, and reductions in marginal tax rates to 50 percent.
The organization also calls for increased competition in the service sector and the introduction of competing companies to provide education and healthcare.
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