December 29, 2008

Fall in krona subtracting wealth in Sweden

Swedish financial experts say a weaker krona could drop Sweden's wealth standing in the Organization for Economic Cooperation and Development.

The krona has lost 15 percent against the euro and the dollar since autumn, the Swedish news agency Tidningarnas Telegrambyra reported Monday.

Hans-Olof Hagen at Statistics Sweden noted the gross domestic product also contributes to the country's wealth standing, but said, we could fall a couple of places.

Now the krona has fallen by 15 percent during the autumn. If it stabilizes at this level then Swedish GDP per capita will decline somewhat in comparison with the rest of Europe, Stefan Lundgren at SNS, an educational association.

Hagen said investors moving toward U.S. government bonds have inflated the dollar's worth. When this changes the trend will go in the right direction again, he said.