Sweden Expects to Pass by Direct Influence of Global Financial Crisis: Minister

Business Materials 20 November 2008 16:46 (UTC +04:00)

Azerbaijan, Baku, 20 November / corr Trend U.Ismayilova / "The Swedish government does not expect direct influence of global financial crisis on the country's economy, but in spite of the fact, it takes antirecessionary measures," Sven-Otto Littorin, Swedish minister for employment, said in Baku.  

"Sweden experienced serious economic crisis at the beginning of 1990s and in this connection, the government and local banks are prepared well to such situation," Littorin said.

In 1990s, the economic crisis in Sweden started for political disagreements, as a result, loan rates reached 500% and the economy ruined practically. Despite the increase of investments, including foreign, and high demand for Sweden goods in the world, Swedish economy, which differs with high degree of internationalization, started to experience some difficulties: development of the most productive branches reduced slightly, deficit of the budget and the public debt increased.  The cost of labor in Sweden became the highest in the world, he said.

Banks began to appeal to the government over shortage of funds during the economic crisis in Sweden, as a result a crisis-proof system of management and regulation of financial system was formed and intensified, he said.

The Swedish bank system is enough healthy from the point of finances as compared to the banks of other countries, therefore direct influence of the crisis is not observed, but indirect impact of the situation is expected, the minister said.

Some 40% of the country's economy depends on foreign trade, therefore if the demand for Swedish goods falls, it will impact on the Swedish economy too, Littorin said.

"In this connection, the Swedish government increases state investments in such spheres of the country's economy, as infrastructure, education and construction and  takes antirecessionary measures," Littorin said.

The correspondent can be contacted at [email protected]