March 6 (Bloomberg) -- Swedish industry will curb investments this year as the export-reliant economy struggles with flagging foreign demand, a survey indicated.
Industry in the $500 billion economy plans to reduce spending to 56.2 billion kronor ($8.8 billion) after raising it to 56.9 billion kronor last year from 51.6 billion kronor in 2011, according to a survey of about 8,000 companies published today by Statistics Sweden.
“Investment plans for this year indicate a decreased investment volume” in the mining industry which last year recorded the largest increase of 69 percent, the statistics office said in a statement on its website. The basic metals and wood-products industries will continue to cut spending this year after reducing investments by 30 percent and 18 percent respectively last year, it said.
Swedish economic growth will pick up to 1.1 percent this year, the government forecasts, after slowing to 0.8 percent last year from 3.7 percent expansion in 2011, because of falling demand for exports, which account for about half of output. About 70 percent of sales abroad go to Europe, where countries are cutting spending to reduce debt.
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