How much can you save travelling now to
Why Sweden is cheaper now?
Sweden is a country which has never been considered as cheap place to travel. High taxes and strict labor laws make products and services in this country expensive. However, of all the Scandinavians, it has become much more affordable.
Sweden is not as expensive as Norway, many museums are free to visit and it is possible to rent affordable accommodation. 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 gains 2.28% trying to compete with European goods and services.
Update. Sweden had implemented quite mild restrictions due Corona crisis outbreak and in fact didn't stop the economy. Now, the Government has decided to stop non-essential travel to Sweden from countries outside EU (with exceptions). Inflation has slowed done to negative side, however food prices have risen by 3,5% year to year.
Krona has lost more than 0,5% in comparison with Euro and more than 2,5% with USD.
Inflation rate is 1,6% and EU inflation is 0.9%.
There are plenty of cheap tickets to Sweden from other European countries. The cheapest tickets in April are:
17€ from Gdansk
53€ from Vilnius
54€ from London
60€ from Bucharest
The BigMac Index by The Economist suggests that Swedish Krona is 12,6% overvalued if we look at the Raw Index. And is 25,4% overvalued using GDP-adjusted methodology.