Stresses and cracks begin to emerge in the Swedish economyWednesday, 28 September 2011
The Swedish economy starts loosing its ‘mojo’ as open observations shows that the economy is weakening.
This is the observation that companies from the Swedish Institute for Economic Research (NIER). It observed that growth in the Swedish economy is currently weaker than normal, following its latest monthly survey.
AdvertisementAlso the Confederation of Swedish Enterprise (Svenskt Näringsliv) predicts a growth of just 0.2 percent for next year according to forecast presented today.
The so-called barometric indicator, which measures total mood and certainty among businesses and households, fell in September to 96.9, from 100.3 in August.
"Expectations were depressed, but today's reading was nevertheless a disappointment," writes Nordea’s economist in a comment on the NIER numbers.
There is also the expectation of falling inflation which started already and to spread for the coming months.
NIER figures suggest that growth in private consumption will slow down significantly in the third quarter compared with the strong second quarter, according to Nordea's economists, who see a growth of 0.2 percent in the third quarter compared with the previous quarter.
The quarterly growth rate during the second quarter was at 1.2 percent.
Confederation of Swedish Enterprise believes that a new economic forecast for the Swedish economy has shown a significant slow down and warns that there are signals of much bleaker times drizzling ever closer.
Swedish GDP is expected to grow this year by 4.1 percent, but growth will fall sharply thereafter to 0.2 percent in 2012 and 0.9 percent 2013. Unemployment stands at the three years stagnant position to just under 8 percent.
By Scancomark.se Team
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