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SWEDEN
Sweden at the mercy of global growth.
The position for Swedish export is twofold. On one hand, the export will grow
as a result of better international economic conditions. On the other hand,
Swedish competitiveness has deteriorated over time and Sweden is losing
market share according to the Swedish
Enterprises economic forecast. The
Swedish economy is now recovering
from a prolonged recession. Growth is
expected to be 3.3 and 3.2 percent in
2015 and 2016. For the most part, development is still driven by domestic
demand owing to the highly expansionary monetary policy throughout the
forecast period. Another contributing
factor is that the growth in Europe and
the US are expected to increase, which
benefits export driven economies like
Sweden. However, there are some concerns about the recovery. There is a
clear downside risk for emerging economies. In addition, companies in the
entrepreneurial panel of Swedish Enterprise has become increasingly negative since the labor market conditions
influence households to save more money. The industrial unions new requirement of 2.8 percent wage increase
and one-year contracts would hit the
competitiveness and lead to higher
unemployment and exclusion instead
of more jobs. What we need is a significant slowdown of wage growth com-