Dousa: Sweden has the muscle to act if the economic consequences of the Iran war worsen

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Dousa: Sweden has the muscle to act if the economic consequences of the Iran war worsen
Photo: Adam Ihse/TT

Dousa sees three negative effects that the war could have on Swedish companies - energy prices, freight prices, and exports and imports from the Gulf states.

Sweden has relatively small exports to countries around the Gulf, less than two percent. However, there are a few products, certain types of plastic, that we import in large quantities, primarily from Saudi Arabia and the United Arab Emirates. These include packaging used in the food industry.

According to Dousa, the products are difficult to replace at short notice.

Individual companies may find it difficult to keep their operations running if they cannot find other suppliers.

On a broader front, he sees high oil and gas prices as the biggest risk.

What sets Sweden apart from basically all other European countries is that we have very strong government finances. If the situation were to deteriorate significantly or become very prolonged, we have the financial muscle to be able to act in a way that few EU countries can.

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By TT News AgencyEnglish edition by Sweden Herald, adapted for our readers

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