Swedish economic growth 'best in Nordics'
The Local · 24 May 2016, 11:28
Published: 24 May 2016 11:28 GMT+02:00
Swedes can take heart from several of the points highlighted in a new report by Moody’s Investors Service in their global credit research.
Sweden’s diversified economy and a competitive export base dominated by knowledge-intensive products ensures it has the best chances of growth in comparison to Nordic peers, Moody's said.
The agency forecasts growth of 3.4 percent for Sweden in 2016, which will then drop to 2.5 percent in 2017. It also noted that all of the Nordic nations are benefiting from macroeconomic stability, skilled labour forces, competitive markets and strong infrastructure bases.
It isn’t all good news however. Moody’s say that Sweden, along with Denmark and Norway, still face the challenge of high levels of household indebtedness. That will come as little surprise for Swedes, who are among the most indebted in Europe due to a combination of housing price inflation and a congested rental market.
Mortgage holders in the country currently have an average debt that is 366 percent their annual income.
Of concern too are declining world export market shares among countries where Moody’s say foreign trade plays an “important role”. That echoes the results of the most recent forecast made by Sweden’s National Institute of Economic Research last March, which warned that exports and investments would be weaker in 2016 than previously expected.