Interviews
Mixed picture for second quarter
09 Oct '07
3 min read
The Swedish economy continued to develop well during the second quarter. GDP increased by 3.5 percent, which was more than the long-term average, but slower than during 2006. This is described further in the report Swedish economy - a statistical perspective, presented by Statistics Sweden.
Gross investments grew again by close to 10 percent. Machinery investments in the private sector were the main factor behind the increase, but investments in the building sector continued upwards. Net exports held back GDP growth during the second quarter by 0.4 percentage points.
Disposable income which rose by 4.8 percent has created a potential for increased household demand. Nevertheless, household consumption rose rather moderately by 2.7 percent, which resulted in a household saving ratio of 14.7 percent.
Domestic demand has increased, partly as a consequence of strong employment, which rose by 4 percent during the second quarter. The growth in demand was mainly among private services such as hotels, restaurants and business services, but other sectors are also expanding.
The positive productivity trend was broken during the last year, as employment has increased strongly while production did not escalate at the same pace. It takes time for newly employed and inexperienced labour to obtain the skills for the same level of productivity as the older more experienced employees. The employment increase is especially large within the service sectors which normally have lower productivity growth, contributing to the low level of productivity.
Gross investments grew again by close to 10 percent. Machinery investments in the private sector were the main factor behind the increase, but investments in the building sector continued upwards. Net exports held back GDP growth during the second quarter by 0.4 percentage points.
Disposable income which rose by 4.8 percent has created a potential for increased household demand. Nevertheless, household consumption rose rather moderately by 2.7 percent, which resulted in a household saving ratio of 14.7 percent.
Domestic demand has increased, partly as a consequence of strong employment, which rose by 4 percent during the second quarter. The growth in demand was mainly among private services such as hotels, restaurants and business services, but other sectors are also expanding.
The positive productivity trend was broken during the last year, as employment has increased strongly while production did not escalate at the same pace. It takes time for newly employed and inexperienced labour to obtain the skills for the same level of productivity as the older more experienced employees. The employment increase is especially large within the service sectors which normally have lower productivity growth, contributing to the low level of productivity.
Popular News
Leave your Comments
Editor’s Pick
Esteemed Clients
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
