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Sweden’s GDP continues growth in second quarter

Sweden's GDP continued its strong development in many areas in the second quarter, rising 4.6 percent in seasonally adjusted figures compared to the same quarter last year, Statistics Sweden (SCB) reported on Wednesday.

The figure represents the highest growth rate increase since the second quarter of 2000. The upturn is mainly a result of the strong growth in business, where demand has accelerated considerably since the financial crisis.

In calendar-adjusted figures, GDP rose by 1.9 percent compared to the previous quarter. Non-adjusted GDP growth amounted to 5.2 percent compared to last year, with inventory changes accounting for half of this figure, 2.6 percentage points.

Household consumption increased by 2.6 percent compared with last year thanks to income growth, low interest rates and increased unemployment. Demand for durable goods increased, mainly automobiles and home electronics. The lower savings ratio is an indicator that part of household consumption is financed through reduced savings.

Despite having been the engine for earlier changes, net exports did not figure in the upturn. The contributions to GDP growth from net exports have been negative figures for the last four quarters.

The upturn was a result of a wider purview of the economy, with strong growth in consumption and investment. Labour market development was especially strong, but the normal pattern of production and employment appears to be broken. Production and employment now largely increase at similar rates.

Both imports and exports had positive development, while net exports held back GDP growth. Although exports increased strongly, imports increased even more. High import volumes are contributing to the areas of the economy that are growing fastest, including household consumption and export goods.

As was the case with the first quarter, demand for goods increased, while trade in services only rose marginally. Countries that were harshly affected by the financial crisis have now slowly begun recovering, resulting in an increased demand for Swedish goods.

Labour market conditions continued to improve.

For the first time in this business cycle upturn, increased employment and decreased unemployment were noted for both men and women. The number of hours worked increased considerably more than the number of employed persons, implying a certain degree of caution for recruiting new employees.

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OSLO

Today in Norway: A roundup of the latest news on Wednesday

Find out what's going on in Norway on Wednesday with The Local's short roundup of important news.

Today in Norway: A roundup of the latest news on Wednesday
Trondheim harbour. Photo by Carlo Alberto Burato on Unsplash

Norway passes 2 million vaccines administered
Norway has now administered more than 2 million vaccines in total, health authorities have announced.

According to the Norwegian Institute of Public Health, the Nordic country passed the landmark on Tuesday evening.

Since the first vaccine dose was given on December 27th, 2020, Norway has administered 2,019,546 doses of a coronavirus vaccine.

READ MORE: Norway to offer everyone second Covid-19 vaccine by end of August

So far, 1,503,794 people have received their first dose, and 515,752 people have received their second dose.

“I want to say a big thank you to all those who are out in the municipalities and who ensure such good progress is being made. I am delighted that the vaccination program in Norway continues at a good pace,” Health Minister, Bent Høie, told news agency NTB.

Number of gambling addicts seeking help during the pandemic rises sharply
The number of people who contacted Gambling Addiction Norway for the first time rose sharply in 2020.

792 people contacted Gambling Addiction Norway compared to 436 the year before, an increase of 82 percent.

Furthermore, the organisation says that numbers this year compare similarly with last year.

“We have never such high numbers before,” Lill-Tove Bergmo, leader of the organisation.

Current Coronavirus restrictions in Oslo extended until end of May
Oslo’s local Covid-19 restrictions will not be relaxed until May 27th t at the earliest.

Next week, the city council will decide whether the city will have more measures lifted at the end of May.

The city has adopted a phased approach to the second step of its five-step plan to reopen.

READ MORE: Oslo relaxes Covid restrictions with shops and malls to reopen 

The next set of measures that will be lifted will see bar’s and restaurants reopen and serve alcohol, along with gyms reopening.

“I understand that the hospitality industry and owners and users of gyms are getting impatient. The first part of step two of the reopening plan seems to have gone well, but we must still be careful. If infections stay low, then it should be possible to open restaurants, gyms, museums and more before may is over,” the city’s mayor, Raymond Johansen, said.

Decline in Norwegian economy in the first quarter
GDP for mainland Norway fell by one percent in the first quarter, according to seasonally adjusted figures.

There was an economic decline in each of the first three months of the year due to increased coronavirus infections and stricter infection control measures that sure retail and hospitality close in parts of the country.

READ MORE: Explained: What Norway’s revised budget means for you 

Total GDP, which accounts for offshore oil and gas extraction, and foreign shipping, fell by 0.6 percent.

Mainland Norway’s GDP was two percent lower in March 2021 compared to when the pandemic began.

473 new Covid-19 infections recorded
On Tuesday, 473 coronavirus infections were registered, a decrease of 36 on the seven-day average.

In Oslo, 86 cases were recorded on Tuesday, 23 less than the seven-day average.

The R-number or reproduction rate in Norway is currently 0.7. This means that the pandemic is receding in Norway as for every ten people that are infected, they will, on average, only infect another seven people.

Total number of Covid-19 cases. Source: NIPH
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