Sweden, the third largest country in the European Union in terms of area is all gearing for the historic elections and ahead of that, there’s not something very pleasing for the citizens and the country as well. The Swedish Krona has fallen to the lowest level since 2009 as it performs as one of the worst performing currencies of this year. T should be noted here that the Swedish Krona has fallen by 8 per cent against the Euro in this year, whereas its regional counterpart, Norwegian Krone witnesses 0.9 per cent growth in this ongoing year.
The fall in the Swedish Krona has led to the weak retail sales data and has alarmed about the upcoming situation as the country witnesses its historic elections, which seem to change the political landscapes with its ‘never before results’. The strategists are of the view that the lower rates of Krona in Sweden are one of the reasons along with multiple others to make this currency fall to a new lo.w. At the same time, the trade war is something that can add more to the latest financial crises heading towards Sweden as the country relies on the export than other factors.
The speculations around regarding Sweden ‘s general elections shows that the political party, Sweden Democrats is in the position to dethrone Social Democrats as the most popular political party of the country. Talking about the Sween Democrats, it is a nationalist and anti-immigration party which is not something that has got the space any earlier in this Scandinavian country. If this party make big gains in the parliament it will be interesting to see as Sweden has around ¼ population with a foreign background.
Commenting over all the ongoing situation and the elections role in making the Krona fall a strategist Anders Eklof at Swedbank AB commented that: “On top of all that we have the Swedish general election, which not least foreign investors have seen as a risk event with the Italian election, the U.K. Brexit vote and election of Trump fresh in mind.”