Low growth expected for Swedish economy

NEWS Published

ECONOMY The economy continues to show slow growth, in Sweden and around the world – as shown in the latest forecast from the Confederation of Swedish Enterprise. “Most concerning is the labour market. Bifurcation in the labour market is widening over time and will continue to do so without structural reforms,” says Bettina Kashefi, Chief Economist at the Confederation of Swedish Enterprise.

Bettina Kashefi, chefekonom på Svenskt Näringsliv
Foto: Carl Bredberg/SvD/TT

Bettina Kashefi, Chief Economist at the Confederation of Swedish Enterprise.

Growth in Sweden reached a high in 2015, and has slowed since. Continued weak growth in 2017 combined with a fast growing population will result in poor GDP per capita growth, well below the historical average.   

“Global risks are are also greater than they have been,” Ms Kashefi points out. “These includes more protectionism, and that many countries are deep in debt. Productivity growth has also slowed significantly. Especially in Sweden.”

The primary growth factors in Sweden are domestic consumption, both private and public. Swedish exports are growing slowly, despite a weak krona. Sweden is struggling with its weak international competitiveness.

We have lost market share – exports grew 8 percentage points less than our total export market over the past decade. High wage hikes in relation to productivity growth in Swedish global exporters is likely one reason for losing export market shares. Currently, Sweden benefits from a weak krona, but is predicted to lose market share once this recovers.

“The labour market is most concerning. Unemployment is levelling out near 7 percent. But the average doesn’t say much about what it looks like in reality. For Swedish born working age people unemployment rates are down to low levels, while large groups are unable to enter the market. Unemployment rates among foreign born averages at 15 percent. Bifurcation in the labour market is widening over time and will continue to do so without structural reforms,” concludes Ms Kashefi.

News

NEWS Published:

Controversial EU tax proposal on digital services causes concern for small exporting economies

TAX The Director Generals for the Swedish, Danish and Finnish business federations have, in a joint letter addressed to the Finance Ministers of their respective countries, expressed their concern for the EU Commissions digital tax plan.
NEWS Published:

Protectionism only produces losers

The impact of globalisation has been positive for most of the world’s population. However, the economic integration of economies also accelerates change which puts increasing pressure on societies to be able to adapt to such change. We need to stand up for the clear advantages of globalisation, while making sure our societies have the flexibility necessary to adapt to rapid changes in technology and labor markets. These were the main conclusion at a seminar about free trade and globalization in times of protectionism, organized by The Society for Business and Politics in the European Parliament.
NEWS Published:

Let’s talk about the losers of protectionism

European politicians have a big role to play in communicating why globalisation matters. We need politicians that are brave enough to talk about the losers of protectionism, not just the losers of globalisation, writes Carola Lemne.
NEWS Published:

The European Commission: Swedish companies best at innovation

Within the framework for the European Commission’s EU Industry Day February 22-23 in Brussels, Teknikföretagen and RISE was chosen to present how Swedish enterprise and academy cooperate around invention under the headline TESTBED Europe, accelerating innovation and strengthening eco-systems. The seminar proved to be one of the events most popular, and gathered experts from all over Europe. The participants all agreed that Sweden is the leading example of innovation, but why?
NEWS Published:

OECDs ambassadors meeting – act for growth and prosperity

January 19th marked the date for BIACs annual meeting with the ambassadors of OECD. This year’s theme was ”Business priorities for OECD action: a call for growth and prosperity” and tackled subjects like entrepreneurship, multilateral framework for trade, tax and investments, creating opportunities for business to create the jobs of the future and developing high quality regulation that strengthens businesses competitiveness. 
NEWS Published:

Trilogue negotiations – striking the right balance between transparency and efficiency

A trilogue is just what it sounds like – a dialogue between three parties. In a European context the three parties in question are the European parliament, the European Commission and the Council. There are advantages to these trilogues; it’s a quicker decision process which can be used ad hoc with the three most important parties present. But the opposition is growing against the increased frequency, particularly because of lack of transparency that trilogues entail.
NEWS Published:

Entrepreneurship crucial for successful companies in Europe

We need a holistic perspective to be able to create a better European ecosystem for entrepreneurs. Innovation is not enough, the products must be commercialised and reach the market if companies are to be able tocreate growth.
NEWS Published:

A framework for free flow of non-personal data in the European Union

COMMENT The Confederation of Swedish Enterprise welcomes this regulation with its aim to ensure the free data flow within the European Union. Europe can no longer afford to keep the Digital Single Market held back by protectionism and fragmentation, says Göran Norén, Head of Department, Industrial Affairs, and Carolina Brånby, Digital Policy expert.
NEWS Published:

Nordic labour market models and the Social Pillar – complementary or colliding?

SOCIAL PILLAR The Nordic employer organizations organised a seminar in Brussels where invited representatives from the EU institutions, industry and trade union discussed their views on the Social Pillar taking into account the Nordic labour market models.
NEWS Published:

Connected consumers: risk or opportunity?

New technology and data-driven innovation create new business models and services that enable companies to help their customers by adjusting their products and become more relevant. At the same time, access to and analysis of data challenges the personal integrity and the view of how integrity should best be safeguarded. How shall development of new services and personalisation be balanced with demands of personal integrity? Do consumers have access to relevant information? And who is responsible for what?
NEWS Published:

Business and politics hand in hand to solve environmental challenges

The world and humanity are facing some of our greatest challenges. More people are using more natural resources. Fish stocks are running the risk of extinction, freshwater resources are far from adequate, carbon dioxide in the atmosphere is increasing and biodiversity is becoming depleted. Never before has a creature been able to affect our planet to the extent humanity does today.All of this constitutes major challenges - but there is hope for our future. And many solutions can be found within the business community.
 
NEWS Published:

The recipe for a competitive EU

The success of the EU’s can be measured largely in the level of exchange in goods, services, people, and capital. The complete implementation of the Single Market is key. Much remains to be done in many areas, such as the free movement of services and labour, eliminating restrictive national processes, regulations and standards, and ensuring that common legislation is applied uniformly and consistently. As long as barriers to the four freedoms remain, European competitiveness will continue to be held back.
NEWS Published:

Trump cannot kill climate hope

As the USA now plans to exit the Paris Climate agreement, the EU and Sweden can have the greatest impact by demonstrating that combining competitiveness and high levels of prosperity with continuing to reduce climate emissions is possible. The entrepreneurial sector will drive climate issues forward, more than policy makers. Technical innovation is advancing quickly in many fields, reducing costs for new technology. Even US President Donald Trump cannot change these facts despite his misguided passion for coal, writes Maria Sunér Fleming, Head of Energy and Climate Policy at the Confederation of Swedish Enterprise.
NEWS Published:

Do we need a more social Europe?

Is a “Social Europe” the right medicine to stop growing populism? Can new social rights and social legislation foster growth and jobs? Is the fight against social dumping in fact a pretext for protecting domestic workers? What is the role of the EU and the Member States?
NEWS Published:

Trust in the European Union at a crossroads – Europaperspektiv 2017

Swedish universities have since 1998 cooperated in national networks within political science, economics and law. The purpose is to enhance the interest and knowledge in the European Union. Each year a book is published to disseminate knowledge to a broader audience. The book is divided into three main areas, political science, economics and law and each year grasps a specific topic. The topic of the year is trust, which incorporates trust both between member states but also between citizens and institutions.
NEWS Published:

How the Nordics achieved an integrated electricity market – Lessons for Europe?

Last November, the European Commission presented its package "Clean Energy for All in Europe". Among the proposals currently being discussed in the Council of Ministers and in the European Parliament are the draft legislation on the electricity market design, security of supply and governance of the energy union.
NEWS Published:

Close the ecocycle – recycling is better than burning

Anders Olsson is CEO for recovery business, Cassandra Oil, in Västerås, Sweden. He thinks that misdirected regulatory frameworks skew the way society manages plastic waste.
NEWS Published:

Free data flows in focus for the entrepreneurial sector

Global free trade, technical development and free data flows are entirely essential to export dependent Sweden. We are in the midst of a transformation to a thoroughly digitalised society where the possibilities for innovation are great and integrity needs equally great. Companies cannot conduct their business across national borders without moving data, as well – whether small or large, and in every industry. How can Sweden and Europe establish data-driven policy where all interests – personal, business, and societal needs – are preserved in the long term?
NEWS Published:

Plenty of red tape waiting to be cut

BETTER REGULATION Cutting red tape has long been a dream of Swedish companies. But the current coalition government (Social Democrats and the Green Party) has put little effort into this issue. Strong measures are needed now, argues a second report from the project A Challenged Sweden.
NEWS Published:

Red tape clogs the Single Market

RED TAPE Design and Lighting business, Watt & Veke, struggles with the administrative burden of selling to the EU Single Market. Right now, they’re having trouble with administering producer responsibility obligations and recycling electrical products. “Things are not as open as we would like,” says CEO Johan Pehrson.