The Swedish economy is capable to absorb the impact of Saab Crash


Thursday, 28 April 2011
A probably bankruptcy of Saab will have little impact on the Swedish economy, according to an analysis by Nordea presented today. While Saab’s management is chasing money in China and the now the Baltics, economist Bengt Rostr�m of Nordea Bank have tried to look at the effects of the eminent collapse of Saab to the Swedish economy.

According to him, it is likely that around 8250 people would lose their jobs. These are 3350 employees at the car company and 4900 people in other companies such as those supplying arts and those relying on Saab in other ways.

Overall, this means that unemployment in the country will climb by up to 0.2 percentage points during the conversion process. But Bengt Rostr�m points out that this is a short-term effect, because the current strong employment situation in the Swedish job market at the moment, it should possible for many to them to find new jobs.


If Saab looses its production capabilities in the country that would equal about 1 percent of industrial output, which means a short-term GDP loss would be of nearly 0.2 percent - or Skr5.35 billion, that is little more than 500 per Swedish citizens.
Both imports and exports are affected when Saab no longer sells cars.

“The calculations must be interpreted cautiously, since they rely on the economic context prevailing in 2005 and may have changed. The estimate is also static and does not take into account the potential for contractors to control their production, "says Bengt Rostr�m to the news paper Dagens Nyheter.

At the Saab plant in Trollhattan yesterday, there was cleaning and information on programs when staff returned on invitation of the management after three weeks of involuntary leave.

The economic quagmire in Saab rolls now entering its fourth week. Maud Olofsson, miniter of Industries declared during a visit to Gothenburg yesterday that the government did what
Saab asked to help the ailing automaker.

The Russian financier Vladimir Antonov, a potential investor ready to plunge in significantly needed cash had a grilling meeting with the Swedish debt office on Tuesday and soon was on a plane to the Baltic States to find "financial solutions".

Spyker's owner and the President of Saab, Victor Muller, was looking and combing in the South East Asia - in giant China.
Saab's situation was not up for discussion when Swedish Prime Minister, Fredrik Reinfeldt on Wednesday met with Russian Prime Minister Vladimir Putin.

But the prime minister commented however, on the Saab's position.
“Of course I feel a concern for a company where production stands still with very high fixed operating costs and where you simply can not produce and sell cars for profit, that people want to buy, "he said.
By Team

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