May 12, 2016

THE VIRTUOUS CYCLE:

Housing shortage could 'hold back growth' for Sweden (The Local, 10 May 2016)

Sweden's economy is on track for a good year, with economic growth set to swell by 3.9 percent in 2016. But a report by Sweden's largest business federation is warning that the Nordic nation should not get complacent.

According to the paper by the Confederation of Swedish Enterprise (Svenskt Näringsliv), 61 percent of companies have experienced recruitment problems over the last year, with employers citing Sweden's housing shortage in 31 percent of cases.

Svenskt Näringsliv's Acting Chief Economist Jonas Frycklund argues that this could make it difficult for Sweden to reach its goal of having the lowest unemployment in the EU.

"Sweden has obvious structural problems that tend to hold back growth," he said in a statement on Tuesday, adding that there was a significant "risk of bottlenecking" in the Swedish economy.

They'll need more immigrants to build those homes, who'll need more homes themselves.... 

Posted by at May 12, 2016 6:57 PM

  

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