The Global Business Climate Survey 2024 reveals that Swedish companies, despite increasing challenges in the global market, maintain their ability and continue to perform well internationally.
Positive Outlook Amid Challenging Times
Swedish companies operating globally are less optimistic about the current business climate compared to the previous year. Demand for goods and services has weakened over the past year, and the global economy is slowing down. Despite this reduced optimism, the outlook remains relatively positive in most markets.
Over 1,700 Swedish companies participated in this year’s survey, responding to questions about the local business climate in 24 different markets for their global sales.
“The survey shows that Swedish companies have managed to navigate well and adapt to geopolitics, war, conflict, and international recession,” said Jan Larsson, CEO of Business Sweden, in a press release.
India Stands Out
This year’s survey shows that over 70 percent of the 195 Swedish companies that responded find the business climate in India to be good or very good. According to Sara Larsson, CEO of the Swedish Chamber of Commerce in India, strong growth, increasing consumption, a focus on infrastructure investments, and rapid transition to sustainable solutions are contributing factors to the positive business climate. Additionally, India’s digitalization is aiding continued investment expansion.
“Swedish companies are building robust businesses in India. Over 80 percent of the surveyed companies expect their turnover to grow in the coming period, and 68 percent report a profit. This is in line with the previous year and indicates that the global economic downturn and geopolitical tensions have not significantly affected businesses in India,” said Sara Larsson.
India, the world’s largest country by population, is projected to become the world’s third-largest economy within a few years.
“In the aftermath of the pandemic, regionalization and risk reduction within supply chains have become more important, and India is a strategic alternative when companies consider redistribution. India is also geographically well-positioned, with access to the growing economies in both Asia and Africa,” added Sara Larsson.
Expectations of Increased Global Investments
The survey shows that over 60 percent of companies expect increased turnover in the coming year. Nearly half of the Swedish companies plan to increase their global investments over the next 12 months. The proportion of companies that consider climate and environmental aspects an important factor in customer purchasing decisions remains at 43 percent from the previous year. Furthermore, over 80 percent of companies feel that the Swedish brand is beneficial for their business abroad.
“A major strength of Sweden and the Swedish brand is the companies’ ability to innovate, adapt, and be creative. Swedish companies are sustainable and resilient, which means we stand strong in a new trade climate. Our brands, products, and services are in good hands. There are challenges, but the opportunities are even greater, indicating a bright future,” said Andreas Hatzigeorgiou, Chairman of Swedish Chambers International (SCI) and CEO of the Stockholm Chamber of Commerce, in a press release.
Four Insights from the Global Business Climate Survey 2024
- Demand for goods and services has gradually weakened over the past year, and the global economy is slowing down.
- Germany and China, traditionally two regional economic engines, have slowed down, and there are questions about the American economy.
- Last year’s high inflation figures have had negative effects on households’ real incomes, consumption, and demand.
- High interest rates are pressuring households, delaying corporate investments, and slowing the world economy.
Read the full Global Business Climate Survey 2024
At the launch of the Global Business Climate Survey 2024, participants included Håkan Jevrell, State Secretary to the Minister for Foreign Trade Johan Forssell, Jan Larsson, CEO of Business Sweden, and Andreas Hatzigeorgiou, Chairman of Swedish Chambers International (SCI) and CEO of the Stockholm Chamber of Commerce.
