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Sweden continues to grow a new research assessment shows

Thursday, 26 May 2011
There is continued good momentum in the Swedish economy. Swedish National Institute Economic research’s (NIER’s) overall economic indicator for the Swedish economy rose in May after a decline in April. Households now expect mortgage rates to rise over 5 percent for in the coming 2 to 5 years ahead

The NIER indicator rose in May to 112.4 making it an increase of two points in April, indicating that the situation is "very strong". The indicator with an index of 100 indicates normal economic situation but at 115.4 shows a record level. The main reasons for the increase were a rebound in the confidence indicator for manufacturing, which rose by three points after a decline of four points in April. Also increased optimism among households is also to be blamed.

"Order growth for the manufacturing industry remained strong in recent months. Production volume has increased significantly and the number of employees has continued to increase, "said NIER.
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Despite the increased optimism in the manufacturing sector, the indicator for the entire industry fell marginally, as optimism in the construction sector and in the private service sector fell slightly. In retail, the situation was unchanged, but, as before, traders had expected a bigger sale than was the case.

In the case of households confidences in their personal finances have improved slightly from April, as well as views on current situation in the Swedish economy. The Swedes' optimism about the country's economy over the next year has declined slightly.
"But the attitude towards the Swedish economy remains more positive than normal in both respects, "writes NIER.

Household survey also shows that Swedes are set to continue rising mortgage rates. In a year it is expected that the variable mortgage rates would be on average 4.6 percent, in two years' it will leap to 5.1 percent and five-year 5.2 percent. These are higher levels than assessed in April for all the all time horizons.

Somewhat paradoxically, the households' inflation expectation over the next year shows that it would be falling: from 3.4 percent in April to 3.1 percent in May. However, it is still a level that the Riksbank (Central bank) will probably not feel comfortable with.
By Scancomark.se Team



Key Swedish Facts
Official Name Kingdom of Sweden
King Carl XVI Gustaf
Prime minister Frederick Reinfeldt
Population 9.3 Million
Capital City Stockholm
Monetary Unit Sweden Krona (SEK)
  1kr = 100 ore
Domain Name .se
Int. Dialling Code +46
Official Language Swedish - Main
Other minor languages
Religion Christianity
Main stock market Name NASDQ OMX
  • OMX 40
  • OMX 30
Internet Speed 5.7 Mbps (2009)
Vital Links
Statistics Sweden
Official gateway to Sweden
Government of Sweden
OECD  &  Sweden
Swedish Central Bank

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