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Booming exports boost for Sweden’s economy

Figures showing a surprise financial growth spurt in the second quarter of the year have been hailed as proof that Sweden's economy is on the road to recovery.

Published: 30 July 2015 17:18 CEST
Booming exports boost for Sweden's economy
The Swedish economy is growing. Photo: Pontus Lundahl/TT

Sweden's GDP showed a strong annual rise by 3.0 percent in the second quarter of 2015, compared to the same period the year before, according to Statistics Sweden. Experts had predicted 2.5 percent growth.

GDP is one of the most important indicators used to assess the health of a nation's economy and represents the total value of goods and services produced over a set length of time.

And Finance Minister Magdalena Andersson welcomed the news on Thursday.

“The new figures are a positive message about the Swedish economy's recovery. The most important thing for the government now is partly to continue to ensure healthy state finances and decreasing deficit, and partly to focus on measures to make sure more people get into work,” she told the TT news agency.

READ ALSO: Why Sweden's economy is brightening in 2015

One of the key reasons for increased growth is Swedes themselves opening their wallets, Robert Bergqvist, chief economist at banking giant SEB, told The Local on Thursday.

“Households are keeping a strong balance sheet and a decent financial position. Many feel wealthier, which means that people feel braver and end up consuming more. Their good economic strength results in purchasing power because wages are rising and inflation is low,” he said.

The weaker-than-normal Swedish krona has strengthened the export industry, which has also benefited from a stronger European market. Last month Swedish exports amounted to a total value of 108,9 billion kronor – 14 percent more than June last year and the highest level in several years.

“The market is moving in Germany which is Sweden's biggest market for export. It consists of various kinds of investment goods – Swedish export industry is dependent on solid investment growth, which is a disadvantage after the collapse in 2008. But successful sectors of the export industry are raw materials, metal, steel and wood,” said Bergqvist.

GUIDE: What the weak krona means for expats

Thursday's GDP figures far exceed a prognosis by Sweden's Central Bank (the Riksbank), which had predicted the economy would grow by 2.5 percent in the second quarter of the year.

However, the bank's main target is inflation, so it is unlikely to be swayed by GDP rates, according to Bergqvist.

Earlier this month, the bank lowered the country's already historically low interest rate even further. They key rate, the repo, fell to a record low of minus 0.35 percent in an attempt to kick-start a slow-moving economy back into action.

The idea behind the cut is to try and boost inflation in order to raise the price of everyday goods and services in Sweden which have been stagnant for two years. It is argued that this in turn will improve the country's economic prospects.

Additional research and interview by Elin Jönsson.

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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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