Inflation falling and interest rates on the decline. There is hope for the economic future of Sweden, despite a troubled environment. – We have a strong fiscal policy, interest rates are being lowered and climate change is benefiting us. Most of it says enough that Sweden has a couple of really good years ahead of it, says Borg. But the geopolitical challenges are great and it risks affecting the world economy. In his new book “Where are we headed – Swedish economy now and forward” Anders Borg, the former moderate finance minister, writes about this very thing. After his time as a minister, he has, among other things, been active as a financial advisor to various companies. Borg on America’s influence The American election is something that worries many, but Anders Borg is reassuring on that front as well. – I think we are a little too worried about the American election, it usually gets pretty calm afterwards, he says. At the same time, the USA’s debt is growing and there is a risk that interest rates will be slightly higher in the long term. – If interest rates go up in the US, it will spread to Europe and Sweden. For a Swedish household, you should think that around three percent mortgage interest should be something you can live with. Biggest threat A threat to the entire economy in the West is China’s aggression against Taiwan, Borg writes in the book. – The trade conflict with China can become difficult. It is a shadow of the great underlying threat, that China is entering Taiwan. Then we will most likely get a shutdown of world trade. You can say that it will be like having the covid crisis and the financial crisis at the same time. It is very serious and troublesome. He therefore thinks it is important for Swedish companies to reduce their dependence on China. – You must make sure that you do not have key components from China. That we get the production of computer chips up in regions other than Asia. If we get to prepare and it doesn’t happen in the short term, then it’s not serious. But it’s such a big risk that you can’t ignore it.
t4-general