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MONEY

Experts predict Sweden’s economy set to grow

The Swedish economy is getting stronger, with the most optimistic analysts predicting that GDP growth will land at around three percent in 2015. But inflation has still not gained momentum and interest rates are set to remain at record low levels.

Published: 2 April 2015 16:35 CEST
Experts predict Sweden's economy set to grow
Analysts believe Sweden's GDP will grow by around three percent in 2015. Photo: Christine Olsson/SCANPIX

A survey in March reported that despite the economy growth spurt, negative interest, record stock exchange trade, and political instability had put a damper on Swedes' willingness to spend the extra cash in their purse and that most consumers were instead choosing to save their money.

But analysts said on Thursday that they believe this is about to change.

“We think that households will continue to increase their consumption," Jesper Hansson, analyst at the Swedish government's own forecast authority, Konjunkturinstitutet (KI) told news agency TT on Thursday. "And property investments are also rapidly increasing,” he added.

The weaker-than-normal Swedish krona has strengthened the export industry, which has also benefited from a stronger European market.

“We can clearly see that exports are growing more rapidly and the development in Europe is a very important factor, it's a large export market for us,” said Hansson.

GUIDE: What a weak krona means for you

Only weeks ago, the Riksbank (the Swedish central bank) cut its key interest rate, the repo, to record negative levels to prevent inflation from stalling after the krona showed signs of growing stronger. Riksbank chiefs said that its recent appreciation risked breaking a positive trend of rising inflation.

“The Executive Board of the Riksbank has decided to make monetary policy even more expansionary by cutting the repo rate by 0.15 percentage points to -0.25 percent and buying government bonds for 30 billion kronor, to support the upturn in inflation,” said the bank in a statement at the time.

And some analysts predicted on Thursday that the Riksbank would slash the repo even further in the spring.

“We think that the Riksbank will continue to lower interest rates in April. It is very focused on establishing confidence in the inflation goal,” Annika Winsth, chief economist at Swedish banking giant Nordea, told TT.

Meanwhile, KI predicts that GDP will grow by 3.1 percent in 2015. This compares to OECD figures estimating a 2.9 percent growth and the Riksbank's and the Swedish government's own predictions of 2.4 and 2.7 percent, respectively.

In February the krona hit its weakest level since the financial crisis. It has since recuperated slightly, with 9.3728 kronor required to buy a euro on Thursday, compared to 9.6835 kronor over a month ago.

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MONEY

How to avoid falling victim to tax scams in Sweden

Sweden's tax agency, Skatteverket, warns of an increase in scams when it's time for Swedish tax-payers to declare their taxes.

Published: 12 March 2024 13:40 CET
How to avoid falling victim to tax scams in Sweden

Anyone who earned more than 22,208 kronor last year received their tax returns digitally last week, marking the start of tax season.

That also means an expected peak in tax-related scams, Skatteverket warns.

Most of the scams are so-called phishing scams, meaning attempts to steal the victims’ personal information. Fraudsters may for example email a person, pretending to represent Skatteverket, and ask them for, among other things, their banking details.

“We’re seeing these in all channels. They use fake emails, SMS, letters and in some cases even phone calls. It is particularly common in tax declaration times – just when we’re about to send out the tax returns, the e-service opens and it’s possible to declare – but above all when it’s time for tax rebates,” Jan Janowski, a Skatteverket expert, told Swedish news agency TT.

A scam email might for example state that you’re entitled to a tax rebate and that you should click a link to receive it. Don’t click any links, open any attachments or reply to the message. Skatteverket advises that you immediately delete the email or text message.

Another common scam is that you receive a text message claiming to be from Skatteverket, telling you that you owe them money and you need to log in to calculate the amount. The website you’re urged to log in via does not belong to Skatteverket. Don’t click the link.

The agency stresses that it never asks people for their banking details. The exception is that you may be asked for your bank account information if you log into Skatteverket’s website to declare your taxes, but that always first requires you to log into the site.

To receive your tax rebate, you need to inform Skatteverket of your bank account number. You do this not by clicking a link in an email or SMS, but by logging into their website using a digital ID, for example BankID, and submitting your details. Only do this on your own initiative. If someone calls you and asks you to log in with your BankID during the phone call, don’t do it. That’s another common scam.

Skatteverket will also never call you to ask for your bank account or credit card number.

It will be possible to declare your taxes from March 19th. You’ll receive any tax rebate you’re owed by mid-April or early June, depending on when you submit your tax return. These are the dates when fraudsters are likely to attempt the most scams.

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