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Spring boost for Swedish economy revealed

Sweden's economy grew by 0.4 percent in the first quarter of 2015, and was up 2.5 percent on the same period a year ago, according to figures released on Friday. But Swedes still appear to be holding back from swiping their cards at the nation's tills.

Published: 29 May 2015 11:30 CEST
Updated: 29 May 2015 12:31 CEST

Spring boost for Swedish economy revealed

Shoppers in Stockholm. Photo: Simon Paulin/TT

Top financial analysts that the latest figures released by Statistics Sweden proved that the economy was continuing to perform well in 2014.

“The Swedish economy is doing well,” said Annika Winsth, chief economist at Swedish bank Nordea, adding that the country was experiencing “satisfactory growth” in line with previous predictions from the Riksbank, the country's central bank.

The growth figures are based on Sweden's GDP (which represents the total value of goods and services produced over a set length of time).

The rise of 0.4 percent in the first three months of the year followed a more unexpected rise at the end of 2014, when the Nordic nation's economy experienced a boost of 1.1 percent.

READ ALSO: Six reasons why Sweden's economy is brightening in 2015

But the figures suggest that household consumption (the amount that Swedes spend at the shops or buying services) is still growing more slowly than expected, with savvy Swedes choosing to save any spare kronor instead.

Household consumption expenditures increased by 0.1 percent compared to the previous quarter when they were up 0.9 percent.

“It's a little unclear why,” said Winsth, adding that she believed the slow progress in this area was likely to be temporary.

Prices of everyday goods and services have been stagnant for two years in Sweden and the nation has recently adopted record low interest rates as part of efforts designed to encourage inflation.

Earlier this month a key EU report predicted that Sweden's economy was set to strengthen in 2015 and the coming years, with “strong investment and a brightening outlook for exports”.

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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