SHARE
COPY LINK

ECONOMY

Cautious optimism for the Swedish economy

Like several of its counterparts, the Swedish stock exchange went in to the holiday season slightly up, despite business in general being slow.

Cautious optimism for the Swedish economy

When the stock market closed on Friday, the OMXS Index had risen by 1.1 percent.

The construction giant Peab ended on a high, having announced a huge commission to build a new shopping centre.

Shares in Peab rose by 9.4 percent after revealing it had won the the commission to build the Mall of Scandinavia shopping centre, next to the new National Arena in Solna in Stockholm, in a deal worth around 3.5 billion kronor ($0.5 bn).

Another firm ending on a bright note was Eniro. The directory assistance company which bought parts of the recently bankrupt Yellow Pages in Denmark for 27 million kronor, saw shares increase by 7.2 percent.

Meanwhile, more encouraging news from the US, notably the lowest unemployment statistics for over three years, had a knock-on effect for the major currencies in Europe.

In other business news, the number of new companies registered in Sweden in 2011 was up seven percent on 2011. According to a survey carried out by software company Visma, some 63,000 new organisations were registered.

According to Svenska Dagbladet, most were limited company or sole proprietorship and the areas seeing the biggest growth in new start ups were Jämtland, Halland and Värmland.

The municipalities registering the fewest new companies were Kronoberg and Kalmar.

In terms of age, the largest increase of new company owners were in the age groups of those under 25 and over 65.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.

ECONOMY

Sweden’s new right-wing govt slashes development aid

Sweden, one of the world's biggest international donors, is planning drastic aid cuts in the coming years, the country's new right-wing government said in its budget bill presented on Tuesday.

Sweden's new right-wing govt slashes development aid

Prime Minister Ulf Kristersson’s government said it planned to reduce the country’s international aid by 7.3 billion kronor ($673 million) in 2023, and by another 2.2 billion kronor in 2024.

That is around a 15-percent reduction from what had been planned by the previous left-wing government and means Sweden will abandon its foreign aid target of 1 percent of gross national income.

International aid for refugees will be capped at a maximum of eight percent of its aid, and will also be reduced.

According to the specialised site Donor Tracker, Sweden was the world’s eighth-biggest international aid donor in terms of absolute value last year, and the third-biggest in proportion to the size of its economy, donating 0.92 percent of its gross national income, behind Luxembourg and Norway.

The new government, which is backed for the first time by the anti-immigration Sweden Democrats, had announced in its government programme last month that it would be cutting foreign aid.

Since 1975, Stockholm has gone further than the UN’s recommendation of donating at least 0.7 percent of its wealth to development aid.

Despite its growth forecast being revised downwards — the economy is expected to shrink by 0.4 percent next year and grow by 2 percent in 2024 — the 2023 budget forecasts a surplus of 0.7 percent of gross domestic product.

It calls for an additional 40 billion kronor in spending, with rising envelopes for crime fighting and the building of new nuclear reactors, as well as a reduction in taxes on petrol and an increase in the defence budget.

The new government is a minority coalition made up of Kristersson’s conservative Moderates, the Christian Democrats and the Liberal party, backed in parliament by their key ally the Sweden Democrats to give them a majority.

SHOW COMMENTS