Gothenburg region still growing strongly
At the turn of the year the Gothenburg region posted 108 consecutive months with job growth.
“It’s going well for Gothenburg just now. A long period with high growth means that almost all indicators in our economic outlook report show record levels,” says Henrik Einarsson, head of the establishment and investment department at Business Region Göteborg.
The unemployment rate continues to decrease and employment is climbing at a faster rate than in both the Stockholm and Malmö regions. At the end of February 2017, the unemployment rate was 5.8 per cent, which is the lowest among Sweden’s metropolitan regions.
Two industries performing particularly well are the automotive and construction industries, where many jobs have been created.
What happens abroad often has a big effect on the Gothenburg region’s economy and labour market. The political unrest in large export markets continues to be a risk factor. But the economies continue to grow strongly in both Europe and in the USA.
“At the same time, Sweden’s population is growing like never before. The Gothenburg region has reached the one million milestone. Growth in the coming years will result from increasing demand via consumption,” says Henrik Einarsson.
But another more pessimistic scenario is that household consumption could be reduced if interest rates start to rise.
“The American central bank raised its repo rate in mid-March and new increases are expected at the end of the year. This can affect the global interest rate levels. Swedish households are highly leveraged. If the interest rates rise and inflation starts to push prices upwards, then the average household will have a lighter wallet,” says Henrik Einarsson.