Business Region Göteborg

Business Region Göteborg

Slight slowdown ahead for the region s important markets REAL GDP GROWTH FORECAST 2018-2019 (IN PERCENT) FOR SWEDEN AND SOME OF THE GOTHENBURG REGION S KEY EXPORT MARKETS COUNTRY SHARE OF REGION S EXPORTS 2018 2019 Sweden* 2.7% 2.0% USA 14% 2.9% 2.7% Belgium 13% 1.9% 1.7% Norway 8% 2.1% 2.1% Germany 7% 2.5% 2.0% United Kingdom 7% 1.6% 1.5% Denmark 6% 2.0% 1.9% China 6% 6.6% 6.4% Finland 5% 2.6% 2.0% Netherlands 5% 3.2% 2.4% France 4% 2.1% 2.0% GDP growth for Gothenburg region s 10 largest export markets (weighted by export share) 75% 2.7% 2.4% Eurozone 2.4% 2.0% World 3.9% 3.9% World trade, goods and services 5.1% 4.7% Average change in oil price per barrel 18.0% - 6.5% * Average of the five last forecasts in the summary produced by the National Institute of Economic Research based on data from The Swedish Trade Union Confederation LO, SEB, Swedish Association of Local Authorities and Regions (SKL), The Riksbank and Unionen. Source: IMF, April 2018

Economic boom continues yet with slightly cooler expectations ECONOMIC TENDENCY INDICATOR FOR THE GOTHENBURG REGION 100 Indicator 80 60 40 20 0 4 9 21 30 37 40 43 44 46 52-20 -40-60 -80-100 2000 spring 2000 autumn 2001 spring Spring Autumn Forecast autumn 2018 2001 autumn 2002 spring 2002 autumn 2003 spring 2003 autumn 2004 spring 2004 autumn 2005 spring 2005 autumn 2006 spring 2006 autumn 2007 spring 2007 autumn 2008 spring 2008 autumn 2009 spring 2009 autumn 2010 spring 2010 autumn 2011 spring 2011 autumn 2012 spring 2012 autumn 2013 spring 2013 autumn 2014 spring 2014 autumn 2015 spring 2015 autumn 2016 spring 2016 autumn 2017 spring 2017 autumn 2018 spring 2018 autumn Source: Region Västra Götaland and Statistics Sweden

Many sectors experience a booming state ECONOMIC TENDENCY INDICATOR PER INDUSTRY IN THE GOTHENBURG REGION Food Durable consumer goods Electronics Manufacturing total Chemicals Gothenburg region total Construction Machinery Wholesale IT consultants Business services Automotive Economic boom 7 17 Actual spring 2018 35 Forecast autumn 2018 40 40 46 50 51 52 61 63 74 Indicator 0 20 40 60 80 100 Source: Region Västra Götaland and Statistics Sweden

Eight years with job growth EMPLOYMENT INDICATOR - PERCENTAGE CHANGE IN NUMBER OF EMPLOYED ON ANNUAL BASIS 5% 4% 3% 2% 1% 1.9% 1.8% 0% -1% -2% -3% Gothenburg region Sweden -4% 2018 Quarter 1 2017 Quarter 1 2016 Quarter 1 2015 Quarter 1 2014 Quarter 1 2013 Quarter 1 2012 Quarter 1 2011 Quarter 1 2010 Quarter 1 2009 Quarter 1 Source: Statistics Sweden

Lowest unemployment rate since 2008 UNEMPLOYED AND PEOPLE IN LABOUR MARKET POLICY PROGRAMMES - PERCENTAGE OF THE REGISTERED WORK FORCE AGED 16 TO 64 11% 10% 9% 9.6% 8% 7% 7.3% 6.8% 6% 5% 4% Malmö region Sweden excl. metropolitan regions Sweden Stockholm region Gothenburg region 5.8% 5.4% 3% 201805 201705 201605 201505 201405 201305 201205 201105 201005 200905 200805 200705 Source: Swedish Public Employment Service and Statistics Sweden

Record-high number of new vacancies and few redundancies NEW VACANCIES FOR PERMANENT POSITIONS AND REDUNDANCIES IN THE GOTHENBURG REGION - THREE-MONTH ROLLING AVERAGE 12 000 10 000 New vacancies Redundancies 9 618 8 000 6 000 4 000 2 000 0 163 201805 201705 201605 201505 201405 201305 201205 201105 201005 200905 200805 200705 Source: Swedish Public Employment Service

Record low vacancy rate for offices VACANCY RATE FOR THE OFFICE MARKET IN GOTHENBURG 20% 18% Central Business District 16% 14% 12% Rest of Inner City Norra Älvstranden Gothenburg total 10% 8% 6% 4% 2% 0% 3.6% 2.7% 1.5% 0.9% 2018 Quarter 1 2017 Quarter 1 2016 Quarter 1 2015 Quarter 1 2014 Quarter 1 2013 Quarter 1 2012 Quarter 1 2011 Quarter 1 2010 Quarter 1 2009 Quarter 1 2008 Quarter 1 2007 Quarter 1 2006 Quarter 1 2005 Quarter 1 2004 Quarter 1 2003 Quarter 1 2002 Quarter 1 2001 Quarter 1 Source: JLL

Short-term prices for flats slightly upwards again PRICE DEVELOPMENT OF FLATS AND HOUSES, MAY 2018 COMPARED TO 1, 3, 6 AND 12 MONTHS BACK IN TIME HOUSING TYPE CITY/REGION 1 MONTH 3 MONTHS 6 MONTHS 12 MONTHS APR 2018- MAY 2018 FEB 2018- MAY 2018 NOV 2017- MAY 2018 MAY 2017- MAY 2018 Flats Gothenburg 0.5% 2.3% -0.1% -4.7% Stockholm -0.4% 1.1% 0.6% -8.7% Malmö 2.6% 2.1% 1.0% -2.9% Sweden -0.1% 1.1% 0.1% -7.1% Houses Gothenburg region -0.6% 0.6% 3.3% -2.6% Stockholm region -0.4% -0.8% -0.3% -7.9% Malmö region 0.7% 1.2% 4.7% 0.6% Sweden 0.2% 0.9% 3.1% -2.0% Source: Valueguard

Strong increase in the private sector s wage sum REAL GROWTH IN WAGE SUMS FROM THE PRIVATE SECTOR - CHANGE COMPARED TO THE SAME QUARTER PREVIOUS YEAR 8% 6% 4% 6.8% 4.4% 2% 0% -2% Gothenburg region Sweden -4% 2018 Quarter 1 2017 Quarter 1 2016 Quarter 1 2015 Quarter 1 2014 Quarter 1 2013 Quarter 1 2012 Quarter 1 2011 Quarter 1 2010 Quarter 1 2009 Quarter 1 2008 Quarter 1 2007 Quarter 1 2006 Quarter 1 2005 Quarter 1 2004 Quarter 1 2003 Quarter 1 2002 Quarter 1 2001 Quarter 1 Source: Statistics Sweden

Strong population growth continues POPLUATION GROWTH PER QUARTER IN THE GOTHENBURG REGION 16 000 14 000 12 000 Quarter 4 Quarter 3 Quarter 2 Quarter 1 10 000 8 000 6 000 4 000 2 000 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: Statistics Sweden

TABLE SUMMARISING THE ECONOMIC SITUATION IN THE GOTHENBURG REGION COMPARISON WITH CORRESPONDING PERIOD THE PREVIOUS YEAR INDICATOR 2018 2017 CHANGE Economic tendency, spring 46 43 +3 units Total wage sum (real SEK billion), quarter 1 49.5 46.7 +6.0% Private sector wage sum (real SEK billion), quarter 1 37.6 35.2 +6.8% People in employment, quarter 1 531,600 522,000 +1.8% Unemployment 16-64 years, May 5.4% 5.5% -0.1%-points Unemployment among foreign-born 16-64 years, May 15.5% 16.1% -0.6%-points Unemployment 18-24 years, May 5.6% 5.9% -0.3%-points Unemployment among foreign-born 18-24 years, May 21.2% 23.9% -2.7%-points Job vacancies, March May (monthly average) 9,618 8,273 +16.2% Redundancies, March May (monthly average) 163 277-41.2% Vacancy rate for office space in Gothenburg, quarter 1 3.6% 5.7% -2.1%-points Population, quarter 1 1,015,974 1,001,032 +1.5% New car registrations, quarter 1 10,615 10,786-1.6% Air passengers, quarter 1 (monthly average) 513,442 499,461 +2.8% Guest nights, quarter 1 (monthly average) 301,971 298,603 +1.1% Source: Region Västra Götaland, Statistics Sweden, Swedish Public Employment Service, JLL, The Swedish Transport Agency and The Swedish Agency for Economic and Regional Growth