Sweden: Immigrants contributed to substantial economic growth

The Swedish National Institute for Economic Research said yesterday that immigration has significantly contributed to increasing economic growth.

Sweden’s public radio reported on the institute’s report saying that migration has led to a rise in public consumption compared to the costs borne by the state and municipalities when they receive the refugees.

The head of forecasting at the institute, Jesper Hansson, said that migration is one of the reasons that contributed to economic growth in the country.

“Consumption increases motivation. The construction of more housing units for those who had been accepted for asylum will raise economic growth,” he said.

However, the institute warned of rising unemployment as a result of increased immigration.

Hansson said the government’s goal to reduce the level of unemployment in Sweden by 2020 to the lowest rate in the EU is unrealistic.

“Forecasting indicates that the unemployment level in Sweden, which is about 6.5 per cent now, will rise in 2019 and 2020.”