Two out of three Swedish exporters directly affected by global unrest
Today sees the publication of SEK's fourth Export Credit Trends Survey. It shows that two out of three of the companies surveyed say their business has been adversely affected by increased geopolitical turmoil. Companies have mainly been impacted by the unrest in Ukraine and the related sanctions between Russia and the West. It is difficult to know exactly how much business has been hit, but we can say that this issue is affecting Swedish companies’ export opportunities. Our survey also shows that export order levels are more sluggish than in the spring, although order levels are still better than a year ago.
The survey also indicates that Swedish exporters are well positioned if current geopolitical risks recede. They generally have a healthy financial position, good funding opportunities and a record-low interest rate environment. In addition to this, the further weakening of the Swedish krona is helping exporters in the tougher operating environment. Over 50 percent of companies now view the krona as advantageous, compared with only 6 percent one year ago.
“In general, Swedish firms are in a very good position. The weaker krona and low interest rate levels are also positive for businesses. If and when the geopolitical turmoil abates, the Swedish export industry has good conditions for growth,” said SEK's Chief Economist Marie Giertz.
Although Swedish firms have generally become slightly more cautious on hiring, the index for the employment plans of large corporations in Sweden is showing a score of over 50 for the first time since our survey began in spring 2013. (Figures under 50 indicate plans for staff reductions).
ABOUT SEK'S EXPORT CREDIT TRENDS SURVEY
The purpose of the survey is to increase understanding of Swedish exporters’ financing needs and opportunities, and the implications of these factors for exports. The target group is all exporting companies with a minimum export volume of Skr 25 million and whose exports account for at least 50 percent of sales. A total of 216 companies responded to the survey, 121 of which were large companies and 95 of which were small to medium-sized businesses. The overall response rate was 49 percent. The survey is statistically assured. The interviews were conducted between October 27 and November 17. The respondents were exporting companies’ chief financial officers or equivalent.
ABOUT SEK
The mission of the Swedish Export Credit Corporation (SEK), which is wholly owned by the Swedish government, is to ensure access to financial solutions for the Swedish export industry on commercial terms. SEK provides an advantage and security for its clients through its independence, specialization and its expertise in international financing.
CONTACT
Marie Giertz, SEK's Chief Economist: +46 (0)8-613 83 32 or +46 (0)70-291 83 32.
Edvard Unsgaard, SEK’s Chief Communications Officer: +46 (0)706-21 84 88
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