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Nordic Countries Plunge Into Recession as Export Markets Fail | Bloomberg Feb. 27

The extent of the Nordic region's economic downturn was highlighted today as Denmark confirmed it was in the worst recession in three decades while output in Sweden and Finland shrank the most in at least 17 years.

The Nordic region is more vulnerable than most to the slump in exports triggered by the global recession. Swedish exports from companies such as Ericsson AB, the world's largest maker of wireless networks, and truck maker Volvo AB, make up about half its GDP. In Finland exports account for about a third of the economy. The average export exposure in the U.S., Japan, and the European Union is only 10 percent to 15 percent, according to Robert Bergqvist, chief economist at SEB AB in Stockholm.

According to the Swedish Embassy, "Sweden is an exporting nation. In 2003, 44 per cent of the country's GDP came from export and 60 per cent of all goods produced were sold abroad."  

The largest trade flows are with Germany, United States, Norway, United Kingdom, Denmark, and Finland, according to wikipedia article.

Sweden shipped 11% of total exports to Germany and, in return, received 19% of total imports from Germany.  In contrast, Sweden made $9.6 billion in its trade with the US, a drop in the bucket compared to the trade with its 'Near Abroad.'

This suggests the Swedish government needs to take immediate steps to co-ordinate economic policy with its major trading partners mostly in the EU.  Palliative measures, such as 20% wage reduction, may work for the short term, tho' there are arguments against, but will not "solve" the problem, long term.

 

She believed in nothing; only her skepticism kept her from being an atheist. -- Jean-Paul Sartre

by ATinNM on Tue Mar 3rd, 2009 at 11:16:39 AM EST

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