Global economy heading for fragile recovery says Business Sweden
According to a new report from Business Sweden, the global economy is expected to grow by around 2.5 percent this year and rise to 2.7 percent next year, despite ongoing trade conflicts, geopolitical tensions, and the war in the Middle East.
The report, titled "Fragile Recovery," notes that the global economy has so far demonstrated greater resilience than predicted.
Lena Sellgren, Chief Economist at Business Sweden, states in a press release that companies are adept at adapting their supply chains, investments, and strategies.
"We are seeing an increasingly complex risk environment where trade and geopolitics, energy prices, inflation, debt levels, and financial markets can influence and reinforce one another. Understanding these interconnections is crucial for navigating the landscape successfully," said Sellgren.
Swedish vocabulary: recovery – återhämtning
Temperatures set to climb to nearly 20C in central and southern Sweden
Temperatures in central and southern Sweden are set to rise by the middle of next week, according to the latest forecast from national weather agency SMHI.
"It could reach nearly 20C, which really stands out for late September," SMHI meteorologist Emma Härenstam told the TT newswire.
Warm south-easterly winds are driving the expected temperature hike. Härenstam attributes the warm air to an anti-clockwise low-pressure system over the Atlantic working in tandem with a clockwise high-pressure system over Russia.
"That pushes warm air up from far to the south," she explained.
Härenstam stressed that it is still too early to give an exact forecast on which day will be the warmest, or how long the warm spell will last.
"Between Tuesday and Friday, we could see a few days with temperatures pushing almost 20C. But it could be anywhere from one day to three days." (TT/The Local)
Swedish vocabulary: a forecast – en prognos
Swedish central bank expected to keep rates on hold – for now
Sweden's central bank, the Riksbank, is not expected to raise its policy rate during today's monetary policy announcement.
However, a clear upward revision of its inflation forecast is on the cards, paving the way for several rate hikes further down the line. Inflation in Sweden remains low -- lower than in many other countries and well below the Riksbank's target.
Yet rising global energy, commodity and shipping costs -- fuelled by the conflict in the Middle East, the war in Ukraine and the El Niño weather phenomenon -- are expected to accelerate price growth in Sweden in the coming months.
The recent sharp decline of the Swedish krona is another factor driving inflation via the cost of imports. The krona's drop – losing more than 25 öre against the euro since early August -- has gathered speed following monetary tightening in Europe and the US.
Sweden's policy rate currently stands at 1.75 percent. A higher policy rate aims to curb inflation by raising borrowing costs across the economy. This slows bank lending, which in turn cools household spending and business investment.
A direct result of a higher policy rate is upward pressure on variable-rate mortgages. However, it can also indirectly lead to higher fixed mortgage rates, rent increases, and higher monthly fees for housing cooperative (bostadsrätt) owners through expectations of future rate hikes. (TT/The Local)
Swedish vocabulary: the policy rate – styrräntan
Swedish Election Authority criticises ballot paper system
Several incidents during Swedish elections stem from the current ballot paper system, according to Anna Nyqvist, Head of the Election Authority.
"We have long advocated that political parties should not handle ballot papers," she told public broadcaster SVT News.
The Ballot Paper Committee was recently tasked with re-examining the Swedish ballot paper system and is considering, among other things, a design that places greater emphasis on check boxes.
The Election Authority advocates a system in which parties do not distribute or deliver ballot papers themselves.
"In many countries, the ballot paper is a secure document issued at the polling station. That way, you know it is printed correctly and contains the right information," said Nyqvist.
Several incidents have occurred during this year's election.
"The majority concern ballot papers—whether stolen, moved, or missing," said Nyqvist. (TT/The Local)
Swedish vocabulary: The Election Authority – Valmyndigheten