The main contributing factor for the sharp increase in goods exports from the Gothenburg region was the automotive industry, which increased by SEK 20 billion in real terms between 2016 and 2017.
“Exports of passenger vehicles has increased very strongly; close to SEK 12 billion in real terms. In particular, there has been a strong increase in exports to the US, Norway and China. How the recent tariff debate between the US, the EU and China will develop remains to be seen. But it may have a significant impact on the region’s export-intensive business environment,” says Henrik Einarsson, director of Business Establishment and Investment at Business Region Göteborg.
Even other indicators in Business Region Göteborg’s first Economic Outlook report for 2018 show that the region’s business environment is prospering. Despite job growth slowing somewhat, it remains positive and has been for the past eight years.
“We are coming from a period with very high job growth, yet employment continues to increase. This is a good sign of a strong business environment in the middle of an economic boom. With more people in employment more wages are paid and the existing jobs become better paid. This allows for increased consumption, which spreads through the whole regional economy,” says Henrik Einarsson.
Above all, many jobs have been created in the private sector, which was also behind the majority of the Gothenburg region’s wage sum growth in the latest quarter. Meanwhile, the unemployment rate was 5.7 per cent, which remains the lowest among Swedish metropolitan regions.
During the fourth quarter the population increased strongly. New records in the the number of flight passengers and tourist guest nights were also posted for the full-year 2017. At the same time, the report also shows that the vacancy rate for offices in Gothenburg is very low and that housing prices in the region are falling, now over the longer-term.