I think it impresses when we have a world situation that is very unstable. Anything that can provide predictability is welcome, says Robert Bergqvist, SEB's senior economist.
The news that the parties had agreed came on Tuesday night after intense negotiations. The agreement concerns a two-year industrial agreement at a level of 6.4 percent. The agreement is worth 3.4 percent for the first year and 3 percent the following year.
It's a long-term perspective in a world that is changing extremely rapidly right now, he says.
"Strengthening Sweden's image"
Predictability is a scarce commodity today and the agreement can play a positive role for Sweden, according to Bergqvist.
The agreement may surprise some international analysts looking at Sweden. In a situation where there is some uncertainty on the labor market and wage growth is quite high in some areas, this is an additional piece of the puzzle that strengthens Sweden's image.
It's an agreement that is in line with the inflation target and at the same time does not risk driving up inflation in Sweden.
Even Susanne Spector, chief economist at Danske Bank, highlights the uncertainty in the world.
The agreement is in line with our forecast and does not come with any major surprises. But it took longer than expected to agree, but it's a genuinely difficult situation. The uncertainty is high and the economy is weak, she says.
Two years – the new trend?
The agreement between the labor market parties applies for two years, which is as long as the agreement has applied for the past three agreements.
It may be a sign of the times that it's more difficult to assess what will happen, making it difficult to agree on wage increases in the long term. By signing a new two-year agreement, you're handling the situation here and now, she says.
Both Spector and Bergqvist believe that the average person will notice a difference in their wallet due to the agreement.
Households have a significantly better economic situation both this year and next year. But the big question mark is still unanswered as to whether households will spend or save, says Bergqvist.
