Southern Sweden finally becomes Sweden's economic growth motor
Tuesday, 08 October 2013
Swedish economic growth will continues to push slowly along the bottom, through this year. However, Southern Sweden has its own wheels, which are spinning very fast and its emerging as the Swedish economic motor.
This comes from study present today by the bank Nordea in its regional economic report. Nordea writes that Southern Sweden is taking the lead in the country's economic growth league this year followed by Mälardalen. Meanwhile western Sweden is stagnating as the rest of the country lay back slightly. By the time the economy would be recovering faster, next year, all regions will grow faster with major urban areas leading.
The Öresund region expected to continue growing / Granscole
South Sweden will grow at some 2.4 percent this year, according to Nordea's forecast. While Sweden, as a whole, will show a downward revision of growth rate to just 0.8 percent.
Western Sweden, led by Goteborg is most affected by the international slowdown and there Nordea expects that the economy to be growing by just 0.1 percent. This region is the manufacturing belt of the country and it relies a lot on international demand for things such as cars, machines, electronic goods, and the like.
"When demand from abroad strengthened next year, it will favour the Swedish export industry. That will contribute to an increased growth in western Sweden. But employment will continue to be weaker than for Sweden overall, "said Lena Sellgren, senior analyst at Nordea.
One driver for the growth of southern Sweden is, according to Annika Winsth, chief economist at Nordea, the Danish economy is going to recover faster and that will affect the entire Øresund region. This means that south of Sweden recovers relatively quickly compared to the rest of the country.
by Scancomarkcom Team