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INSIDE SWEDEN

Inside Sweden: Friendship, work permit threshold and healthcare strike

The Local's editor Emma Löfgren rounds up the biggest stories of the week in our Inside Sweden newsletter.

two women talking to each other at an outdoor table on a summer evening
How did you meet your friends in Sweden? Photo: Maskot/Folio/Imagebank.sweden.se

When a survey by national number-crunchers Statistics Sweden this week showed that 13 percent of foreigners don’t have a close friend, double the proportion of native Swedes who said the same thing, it got me thinking about what counts as a “close friend” anyway.

Are they our childhood friends whom we leave behind when we move countries? The ones who knew us through our childhood, our awkward teenage years and wild university days, who know all our past positives and negatives inside out, but not much about our day-to-day life?

Are they our new casual friends, who maybe aren’t yet our first call when we’re feeling down, but who know what we think about Swedish politics, what our favourite bar is, what music we like, but not anything about who we used to be (and that can also be a good thing)?

What do you think?

We’ve written many times before on The Local about how difficult a lot of foreigners find it to find friends in Sweden and this time we wanted to look at the issue from a more constructive and hopeful viewpoint, so we asked readers to tell us how they met their friends in Sweden.

I enjoyed reading all of their responses and was struck again by how these articles based on reader surveys are some of my favourite articles to write. I’m always very grateful for the fact that so many of our readers are so generous with their time, stories and insights. 

Here’s the article if you haven’t yet read it, and keep reading for more of what we’ve covered this week.

In other news

Sweden’s main business group this week attacked a proposal to exempt some jobs from a new minimum salary for work permits (as well as the bid to raise the threshold), calling it “unacceptable” political interference in the labour model which risks hurting national competitiveness.

A nationwide overtime ban involving tens of thousands of Swedish nurses and midwives got under way on Thursday afternoon, after negotiations about salaries and rotas broke down. Strikes are rare in Sweden, but what should you do if your union asks you to strike?

Planning a train trip in Sweden this summer but don’t know where to start? Try our top picks for railway travel across Sweden.

Sweden is one of many European countries struggling with brain waste, a situation where immigrants struggle to find suitable full-time work or are overqualified for their roles due to their education not being recognised. So how many immigrants in Sweden are overqualified?

Speaking of brain waste, a new analysis by Sweden’s main business group found that 51 percent of the labour migrants likely to be blocked by the new higher salary threshold I mentioned above will be graduates – not low-skilled workers as the government has claimed. The Local interviewed Karin Johansson, deputy director-general of the Confederation of Swedish Enterprise, about what this means for businesses.

Inside Sweden is our weekly newsletter for members which gives you news, analysis and, sometimes, takes you behind the scenes at The Local. It’s published each Saturday and with Membership+ you can also receive it directly to your inbox.

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For members

INSIDE SWEDEN

Inside Sweden: What’s in store for the economy after interest rate cut?

The Local's editor Emma Löfgren rounds up the biggest stories of the week in our Inside Sweden newsletter.

Inside Sweden: What's in store for the economy after interest rate cut?

Sweden was one of the first countries in the western world to lower its interest rate this week, following Switzerland and some smaller markets such as the Czech Republic and Hungary.

The Swedish central bank, the Riksbank, this week slashed the country’s main interest rate from 4.00 to 3.75 percent – a move that was partly expected, and partly came as a surprise.

Expected, because the bank had previously said that it would most likely cut the rate in May or June, with many experts believing it would happen in May on the back of falling inflation.

A surprise, because it beat both the US Federal Reserve and the European Central Bank to it, and Sweden’s inflation rate is still higher than that of its Nordic neighbours Denmark and Finland.

But there are a few reasons why it makes sense that Sweden is among the first ones out.

Swedish GDP has been on the decrease for four consecutive quarters. Unemployment has been increasing more than in a lot of other countries, as have bankruptcies, reported the TT newswire.

But above all, Swedish households are very sensitive to interest rate fluctuations, so although the state economy is generally strong, individual households have been hit hard by the high rates.

I talk on the latest episode of The Local’s Sweden in Focus podcast about how a few years ago, Swedish interest rates were very low. This meant that a lot of households signed up for high debts and mortgages that they struggled to pay after interest rates started climbing high again.

What’s in the pipeline for the Swedish economy?

The Riksbank expects to lower the interest rate another two times this year, saying that inflation measured according to the CPIX metric (ignoring mortgages) is close to its two-percent target.

That said, it points out that the long-term forecast for inflation is uncertain. Geopolitical instability, the strong US economy and the Swedish krona could make inflation rise again, warns the bank.

You should not expect another cut to the interest rate next month, but possibly further ahead.

Sweden’s labour market is expected to keep struggling a while longer with high unemployment, but the state of the gross national product (GDP) is expected to slowly improve. We’re also already seeing signs that the Swedish property market is starting to come back to life.

In other news

The Local reported the interest rate announcement as soon as it was out on Wednesday. We also published this guide to three ways the lower rate could boost your own personal finances.

Many banks have already started lowering their mortgage rates in response to the Riksbank’s announcement. We’ve got the latest list of which Swedish banks offer the cheapest mortgages.

The Eurovision Song Contest final is set to be held tonight in Malmö, with another big demonstration to protest against Israel. The first of the two major protests scheduled for the week drew around 10,000-12,000 participants and was calm and peaceful, said police.

I’m hoping to plant my zucchini outside this weekend. In Sweden in Focus Extra, gardener and TV host John Taylor gives his best tips for getting the best out of your Swedish garden.

As many as 70 percent of internationals want to stay in Sweden but only 40 percent end up doing so. What can be done to improve this figure?

Many foreigners living in Sweden want to stay in the country but struggle to find a job, despite having relevant qualifications. The Local spoke to three experts for their advice.

Thanks for reading and have a good weekend.

Best wishes,

Emma

Inside Sweden is our weekly newsletter for members which gives you news, analysis and, sometimes, takes you behind the scenes at The Local. It’s published each Saturday and with Membership+ you can also receive it directly to your inbox.

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