Early signs of recovery in Stockholm
TT/The Local · 5 Aug 2009, 12:59
Published: 05 Aug 2009 12:59 GMT+02:00
- Riksbank halves interest rates (02 Jul 09)
- Sweden chips in for Iceland bailout (01 Jul 09)
- IMF praises Sweden's response to financial crisis (16 Jun 09)
But despite the apparent turnaround, it's too early to say the Swedish capital is out of the economic danger zone, according to the Stockholm Barometer at the Stockholm Chamber of Commerce (Stockholms Handelskammare).
The recession indicator for the Stockholm economy has increased from -23 to -13 between the first and second quarters of 2009, according to the chamber. A value of less than zero points to a weakened economy.
“We are still in a recession, but strong retail, increased demand for consulting services and positive export figures are signs that economic activity is on the rise in Stockholm,” Johan Treschow, head of economic analysis at the Stockholm Chamber of Commerce, said in a statement.
According to the barometer, the Stockholm labour market continued to “weaken considerably during the second quarter.”
“For the third quarter, the number of employees is expected to continue to decrease, but at a slower pace than previously. The majority of cutbacks are planned in neighbouring segments as well as in the construction and manufacturing industries,” the chamber reported.
Retail spending increased during the second quarter, which indicates increased consumer confidence, according to the chamber.