# Two-speed economy in Sweden, central bank business survey shows Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-06-09 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Sweden's Two-Speed Economy Revealed: Central Bank Meta Description: Discover how Sweden's economy is divided between strong export/manufacturing sectors and struggling retail businesses in the latest central bank survey. URL: https://financedigest.com/two-speed-economy-in-sweden-central-bank-business-survey-showshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-06-09t084508z1lynxmpej58086rtroptp4sweden-cenbank-rates-1736813911440-compressed.jpg) # Two-speed economy in Sweden, central bank business survey shows STOCKHOLM (Reuters) – Sweden’s economy is split between export and manufacturing businesses which are doing well and retail-facing firms which are having a hard time, a regular survey by the central bank showed on Friday. “The business sector is clearly divided, both in terms of its view of economic activity and the need to continue raising sales prices,” the Riksbank said in a summary of the survey. Economic activity was stronger than expected in the first quarter, with GDP expanding 0.6% compared to the previous three month period. But that has masked a split between different sectors. [Surging inflation and higher interest rates](https://www.financedigest.com/boes-bailey-speaks-about-surging-inflation-and-rate-hikes.html "BoE’s Bailey speaks about surging inflation and rate hikes") have hit households particularly hard. Consumption has declined, [house prices](https://www.financedigest.com/uk-house-prices-show-unexpected-strength-in-october-nationwide.html "UK house prices show unexpected strength in October: Nationwide") have dropped and many mortgage borrowers are struggling to make ends meet. However, the export sector has done much better, thanks in part to a weak [Swedish crown](https://www.financedigest.com/u-s-dollar-gains-ahead-of-fed-swedish-crown-falls-after-hike.html "U.S. dollar gains ahead of Fed; Swedish crown falls after hike"). The Riksbank said the [manufacturing sector](https://www.financedigest.com/expansion-in-manufacturing-sector-has-increased-demand-for-industrial-cooling-system-market.html "Expansion In Manufacturing Sector Has Increased Demand For Industrial Cooling System Market") remained strong, with production, orders and profitability robust. But retailers are having a tough time. The cost increases continue to be a concern for the [retail trade](https://www.financedigest.com/westpac-to-layoff-300-workers-in-business-and-retail-unit-says-trade-union.html "Westpac to layoff 300 workers in business and retail unit, says trade union"), which experiences increased purchasing costs when the krona is weak,” the Riksbank said. In terms of pricing, the outlook was also mixed. The Riksbank is struggling to bring down [inflation but retailers plan to continue raising prices](https://www.financedigest.com/french-retailer-carrefour-to-freeze-prices-on-100-products-to-tackle-inflation.html "French retailer Carrefour to freeze prices on 100 products to tackle inflation"), the survey showed. Manufacturers, however, said that [price hikes](https://www.financedigest.com/mr-kipling-maker-premier-foods-to-stop-price-hikes-this-year.html "Mr Kipling maker Premier Foods to stop price hikes this year") were now slowing. The Riksbank plans to [raise rates](https://www.financedigest.com/snb-defends-raising-rates-says-not-to-blame-for-credit-suisse-failure.html "SNB defends raising rates, says not to blame for Credit Suisse failure") at least one more time this year, either at the end of this month or in September. (Reporting by Simon Johnson; Editing by Toby Chopra) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---