The impact of the recession on the Swedish medtech sector
Av The war in Ukraine, high inflation and high-interest rates have had a shaky effect on the economy, globally as well as in Sweden, and at the beginning of the year, the Swedish National Institute of Economic Research declared that Sweden has entered into a recession.
Anna Lefevre Skjöldebrand, CEO of Swedish Medtech, says that some of the member companies of the industry organisation are reporting reduced order intake.
“The recession is adding pressure on national healthcare budgets, which might lead to reduced investments, for example, the healthcare sector buying less equipment and consumables.”
She adds that Swedish Medtech does not see a general decline on a broad scale and emphasises that the outlook varies from company to company. Small development companies are most at risk because venture capital companies are not as keen to invest in start-up companies when times are tough.
Anna Lefevre Skjöldebrand, CEO of Swedish Medtech.
“You might easily presume that the weak Swedish krona is advantageous for manufacturing companies in Swedish Medtech with export to other countries, but this is not necessarily the case,” says Anna Lefevre Skjöldebrand.
“Selling equipment from Sweden can be easier as the weak Swedish krona makes it cheaper for other countries to buy from here. However, companies often need to buy materials in Euros or Dollars, which adds to the cost pressure when the krona exchange rate is as low as it presently is.”
Regarding Russia’s war against Ukraine, the main impact on the Medtech sector is transport, according to Anna Lefevre Skjöldebrand.
“When the sanctions against Russia were introduced, we conducted a survey among our member companies, and it showed that very few of them, hardly any at all, are manufacturing in Russia. On the other hand, some companies have operations in Ukraine, especially on the software side, which is a challenge.”
“We see problems for our members because transport has become more expensive as transport across Russia is no longer possible.”
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