Christmas, New Year's vacation costing Sweden hundreds of millions of dollars

AFP ^ | December 20, 2003

[Charles Henrickson]

STOCKHOLM (AFP) - While most people are likely thrilled that all of Sweden's Christmas and New Year public holidays this year fall on weekdays, the country's economy could suffer, a Swedish newspaper reported.

"On average, Swedes have 250 workdays a year. This year it's 249," Jesper Hansson of the the National Institute of Economic Research in Stockholm told Dagens Nyheter.

While that may sound like a reason to celebrate, it also means that Sweden's gross domestic product will lose about 0.1 percent, or approximately two billion kronor (274 million dollars, 221 million euros) this year.

With all five of Sweden's public holidays this Christmas season -- December 24, 25, 26 and 31, along with January 1 -- falling on weekdays, one could have expected the fallout to be even more serious.

The fact that most of Swedish industry does not shut down over the holidays reduces the impact on the Swedish economy, Hansson said.

But while factories may keep their assembly lines running, most Swedish consumers will put off buying their products until after the holiday season is over, Hansson said.

Contrary to general perceptions, Christmas vacation is not the ideal time to get shopping out of the way in Sweden, since most of the shops also shut their doors.

"And households don't have more money just because it's the holidays. They actually shop less," Hansson said.

Swedes worried about the holiday hit on their GDP this year can take heart, however. Next year, four public holidays will fall on weekends, thus adding an extra 0.3 percent GDP to the country's coffers.

[Charles Henrickson]

Hej! to the Swedish Ping List.

[Charles Henrickson]

Swedish children dressed as Santa Lucia and Santa Claus celebrate Lucia Day in a Stockholm. Sweden's Christmas public holidays falling on a weekend may hurt the country's economy. (AFP/File/Sven Nackstrand)

[The Great RJ]

The problem with Sweden's GDP has little to do with the number of working days and a lot more to do with the lack of economic development particularly by entrepreneurs.

Imagine trying to start a new business in an economy where the taxes have eaten up personal savings and venture capital and the regulatory bureaucracy and omnipresent labor unions make running a start up business nearly impossible. Add to this the disincentive of paying most of your normal profit as well as economic profit in high taxes as well as VAT making the cost of your goods more expensive to consumers --no wonder their GDP is going nowhere.

[joesnuffy]

Dont cry...I promise to buy another Aimpoint this yr.

[Charles Henrickson]

I Yust Go Nuts at Christmas

[rcocean]

I always love these kind of articles.

Do you realize the Swedes lose billions by taking off Saturday and Sunday? Thats 104 Days a Year!

Obviously, the Swedes should work 365 a days a year. Then the GDP would go sky high.