Is Sweden cheap for travelling in 2020?
Sweden is not as expensive as Norway, many museums are free to visit and it is possible to rent affordable accommodation. But now it has become even cheaper, due to Swedish Krona plunge since the beginning of 2019. The reasons of currency weakness are the underperformance of economical growth in comparison with EU growth; possible cancellation of rate hike from Riksbank, based on a weak outlook for inflation; fears of global slowdown.
On the 19th of December Swedish Central Bank has risen its main interest rate for the first time in 5 years. Riksbank’s experiment to boost inflation (and economic growth) by inventing negative interest rates is finished (for a while?). It was the decision which was expected and we saw the slow growth of Krona from the 09 October.
What does it mean for us? We still believe that Sweden is more affordable: year-to-year Krona loses 2.73% trying to compete with European goods and services.