Business

Business News [ ] Sweden’s economy in roller-coaster mode

Sweden, COVID-19 and GDP

By Peter Berlin

The 2nd quarter of 2020 (April through June) saw the worst ravages of the coronavirus to date, and the world economy suffered accordingly.

Amazon to launch Swedish website

announced that it will establish a Swedish website – www.amazon.se. In the past, the company’s Swedish customers have been re-routed primarily to its German website. The new site will offer small businesses in Sweden an opportunity to reach a much wider customer base both in Sweden and abroad. Delivery times will also be shorter than before. At the same time, Amazon will be a formidable competitor to Swedish enterprises, especially in the areas of electronics, household appliances and sports equipment. Swedish businesses therefore view the launch of the website with a mixture of enthusiasm and trepidation.

The Swedish/Danish mail distribution service Postnord is in negotiations with Amazon to become the Compared to the 1st quarter, Sweden’s GDP fell by 8.6 percent. The equivalent preliminary figures for some other major economies were as shown in the table.

The comparison suggests that Sweden’s decision to forgo strict lockdown has so far paid off as far as the latter’s primary distributor in Sweden. If the negotiations succeed, the agreement will be a lifesaver for Postnord which may otherwise have to file for bankruptcy. The decline in Postnord’s fortunes is mainly the result of the Internet replacing letters as the primary conduit of written communication. Another factor is the company’s poor track record when it comes to delayed and lost parcels. Amazon’s Prime service, on the other hand, guarantees deliveries within two working days – a performance to which Postnord will have to commit.

national economy is concerned. Only time will tell whether this conclusion holds steady as the pandemic continues to ravage societies and economies around the world.

Comparison chart of GDP percentage drop in the

In a recent press release, Amazon

2nd quarter of 2020 (April through June)

Swedish krona on the rebound

After hitting a 17-year low against the US dollar and a 10-year low against the Euro in March, the Swedish currency has strengthened 9 percent in value against most major currencies. One cause of the rebound is thought to be the fact that Swedish banks offer a higher interest rate on deposits compared to most foreign banks. Another factor is the Swedish approach to dealing with the COVID19 pandemic, which has mitigated the extent of decline of the country’s economy.

9.1404 9.0242 8.9080 8.7919 8.6757 SEK per USD

Jul 15

Jul 25 Aug 4

Aug 13, 2020: 8.6757

Aug 14

The strengthening of the Swedish currency over time relative to the US dollar means that fewer SEK are needed to buy one USD. Source: Oanda

Bringing the French Riviera to the North

By Peter Berlin

Now, here is an interesting Swedish lifestyle concept for anyone living along the northern latitudes. Imagine stepping out from your apartment in the morning straight into a Mediterranean landscape replete with palm trees, olive trees, exotic plants, fountains, and a babbling brook. Returning home in the late afternoon, you may opt to join your neighbors for a glass of wine in the gazebo while resting your tired eyes on the rich subtropical vegetation and enjoying the summerlike temperature.

Such is life in the new Bovieran condominium complexes for the over-55’s. Bovieran is pronounced bo-vee-air-an and takes its name from “Bo” (to live) and the French Riviera. The centerpiece is the winter garden bordered on three sides by three-storey apartment blocks. The fourth side is closed off by a huge glass wall, and the whole garden is covered by a glass roof, atrium-style, creating the right climate for the winter garden. Thanks to the greenhouse effect and the clever use of vents and fans,

Glass-covered winter garden. Photo: Bovieran AB

room temperature is maintained in the garden day and night from March through November without the need for either heating or air conditioning. In mid-winter the garden temperature is allowed to drop to as low as 10ºC (50ºF), giving the vegetation some rest.

The apartments are relatively small by North American standards. Each unit measures between 64 and 87 m 2 (640 – 870 sq.ft) and consists of a bedroom, a livingroom, a kitchen, and a utility room. The purchase price ranges from SEK 1.5m ($160k) to SEK 2.5m ($270k), on top of which there is a monthly charge of around SEK 4,000 ($430) to cover utilities and maintenance. There are also communal spaces, including an apartment reserved for visitors, a sauna and a club house. The club house can be used for parties, training courses, exercise equipment, doctor’s visits, etc. It is up to the condominium association to decide how to make best use of the facility.

The Bovieran concept was born in 1989 when a Swedish builder, Göran Mellberg, noted the therapeutic properties of the Mediterranean scenery and climate on the French Riviera. He was also well aware of the shortage of retirement homes in Sweden. The question he asked himself was simple enough: how to bring the Mediterranean ambience into an expanded network of retirement homes in Sweden? The answer was anything but simple, and it took until 2007 before the construction technology was mature enough to turn his vision into reality. The first Bovieran complex opened in 2009 in Partille near Gothenburg. Since then, 27 “Bovieras” are up and running primarily in the south of Sweden, plus three in Denmark, and many more are under construction. The Bovieran concept is sufficiently unique to enjoy patent protection in the European Union.

How about introducing the Bovieran concept on both sides of the US/Canadian border where the climate is similar to that in Sweden? Visit www.bovieran.se for more information, along with an informative photo gallery.

Bovieran interior. Photo: Liljewall Arkitekter

Winter garden. Photo: Liljewall Arkitekter

Bovieran Teleborg, Växjö. Photo: Bovieran AB