Swedish Economy Continues to do OK Despite the Global Slowdown

November 4, 2014Swedenby EW News Desk Team

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Recent evidence suggests that the economy in Sweden will continue to pick up the pace throughout 2014 and 2015. In the second quarter, Sweden's GDP grew by approximately 0.7%, significantly more than the 0.3% that had been predicted by analysts earlier in the year. Experts believe that the Swedish economy will see a serious recovery during 2015; however there are comments that the risk of slowing global growth could eventually have an impact.

This is another country that has socialized health care which eats into GDP and forces the government to over-tax every citizen that shows some financial personal responsibility.

Sweden's finance Minister, Magdalena Anderson, whose left-center social democrat party won the election in September, took on an economy that is growing and thriving better than most of its European peers. However, despite the obvious advantages that Sweden has been experiencing recently, Anderson commented that risks could arise if Germany was to enter recessionary times. Currently, there are still various resources within the economy that are going unused, and weaker growth is always threatening any country that puts in office someone who does not respect the private sector.

The Future for Sweden's Economy

The estimation given by insiders is that the economy should grow approximately 2.1% this year, followed by a further 3.0% growth in 2015. The 2015 forecast remains the same as that which was predicted by the previous government, but the 2014 forecast has gone up from an initial and unimpressive 1.9%. So far, it seems as though Sweden is set to experience another year of steady increases, since its pathetic 1.6% growth in 2013.

The social democrats seem to have a more enthusiastic and positive outlook for the economy of Sweden after September's election, however, even with their Green party coalition partners, they do not possess the parliament majority. At this point, the government in Sweden is considered to be one of the weakest the country has seen in decades because there still many folks in Sweden who do not believe socialism is the answer because it never has been.

Right Out of Obama's Economic Playbook

Despite this, the coalition will be offering up a budget soon, and claims that it will be raising income tax for the wealthy. They believe punishing the hardest workers in society will somehow motivate more people to want to be wealthy and will not push money out of the country. New York State has done this and has seen a steady flow of millionaires relocate to Florida.

A further promise from the government has been to end tax breaks for companies that employ people younger than 26 years of age, and to offer more funding to schools and welfare services, as well as providing a better quality of living for pensioners. This is the exact opposite of what Texas is doing which is creating jobs and success for millions of people.

Cash-Free Society?

Another interesting development in Sweden lately has been the evidence of a move towards a cashless society. Currently, statistics show that approximately four out of every five purchases within the country are made through electronic payments or debit cards.

Swedish locals have been found to use their credit and debit cards almost every day for a variety of purchases, leading to approximately 260 electronic transactions per person within the country, every year. The biggest advantage of this is that it increases security for customers and bank staff alike. Sweden spends approximately $1.2 billion every year securing the money within their banks, amounting to approximately 0.3% of GDP. But what does this have to do with creating jobs? Not even Anderson knows.

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