Investment opportunities for Finish SME´s in Sweden

The Swedish economy continues to experience, despite being modest, a positive growth of 2.5 percent/yearly for 2018. Interest rate is being kept at a record low -0.5 percent by the Swedish central bank, trying to meet the inflation goal at 2 percent (2.5% September -18).  Over a decade with low interest rate has managed to cope quite well with inflation and slowly got the economy turning after the recent -08 financial crises. Since then the most noteworthy change in price level has by far been the housing market. Average household debt has substantially increased and many economists predict a housing bubble. The central bank has taken measures and put into place an amortization requirement for new housing loans. Still many argues that it is too low and does not have the desired effect.

Why is this information important for Finish SME’s interested in Sweden?

Simply because the increasing preferred method for Swedish people is buying their place of living by using a bank loan. So a potential melt down and, or a sudden increase in interest rate would have a serious impact on overall consumer spending and the economy as a whole.  Having said that, regardless of if there is a bubble or not. There are always areas that are lucrative for investments and expansion. As long as you are aware of the current social-economic situation in the market of your interest.

Sweden and Finland have a long history and strong relationships when it comes to trade and cooperation in Business. It is seen as a natural first step for many Finish SME’s to start international expansion by beginning with Sweden and later Scandinavia.

Following areas should be considered viable investment opportunities;

• Sweden has a long-established tradition of expertise in engineering, ship-building, mining and the life sciences, making it a highly receptive market to new advanced technologies.
• There is ongoing, strong demand for advanced technologies and products/services that improve productivity, including IT software and services that lower costs and improve business efficiency, as well as equipment and services for safety/security, including cyber security.
• Driven by rapid, widespread adoption of smart devices, Sweden’s internet economy is growing more than ten percent annually and represents about eight percent of total GDP.
• Since Swedes are early adopters of new technologies, Sweden is considered to be an ideal test market, albeit an expensive one.
• Green Opportunities: Sweden’s commitment to sustainability across industry sectors drives market demand for products and services in renewable energy/low carbon/green technologies and energy efficiency.
• Sweden’s rapid developments in smart grid, bioenergy, cyber security and e-health make the country a critically important market for companies offering advanced technologies.
• English is widely spoken, and English is the language used for business agreements.

To summarize, Sweden is still considered a long term stable place for investments, despite what will happen with the housing market, there are still several areas that have clear investment opportunities for Finish SME’s. To find out more detailed information regarding your area of business or anything else related to Sweden or Scandinavia, please contact us and we will assist you.