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Konjunkturseminarium

Gothenburg’s economy remains strong

The general boom in combination with an incredibly strong automotive industry as well as extensive urban development projects are making the Gothenburg region’s economy red-hot. But supply of expertise continues to be a problem, according to Business Region Göteborg’s latest Economic Outlook report.

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The Gothenburg region has had a long period of economic growth. Employment has increased every month since March 2010 and now in the spring we have gone above and beyond the mark for an economic boom.

“The upturn within the automotive industry and all of the region’s urban development projects are two key factors. Our analyses also show that these two sectors have extra-large spreading effects to the rest of the economy,” says Henrik Einarsson, head of the establishment and investment department at Business Region Göteborg.  

A series of political happenings abroad have recently taken place. Britain has launched the Brexit process and has faced terror attacks and a new election; and Donald Trump continues to have problems getting through his policies. In addition, Germany has an election this autumn and Italy has one in the spring.

But despite the political uncertainty, many economies are doing well. IMF’s latest outlook for global developments show that the majority of Gothenburg’s important export markets expect growth during 2017. And this is good for the Gothenburg region’s export-intensive business community.

Meanwhile, the outlook for the autumn shows that companies are still optimistic and they expect the economic boom to continue throughout the year. The sectors with the highest economic index scores are the transportation industry, IT services, construction and business services.

During the first quarter employment growth in the Gothenburg region was 2.7 per cent year-on-year - the increase is greater than for Sweden on the whole (2.3 per cent). At the same time, skills supply is a problem in the region. Half of the transport companies experience that it’s difficult to recruit competent workers and 7 out of 10 construction companies see skills shortages as the main hurdle for the sectors continued growth.

The Gothenburg region’s population passed the one million mark during the first quarter.   

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