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How immigration is fuelling Sweden’s economic boom

Immigration has helped fuelย Sweden’s biggest economic boom in five years, new figures have revealed.

The Swedish government, whose policies saw the country take inย more refugees per capita than any other in Europe last year, helped lower unemployment rates byย increased spending on welfare for asylum seekers from war torn countries like Syria, Afghanistan and Iraq.

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The move helped theย Nordic region’s largest economy expand 4.5 percent on an annual basis in the fourth quarter of 2015, the most in almost five years and more than twice the growth of Germany, according toย Bloomberg.

Increased consumer spending and borrowing and high house prices also contributed to the boom which, although projected to fade, has consolidated Sweden as one of Europe’s success stories.

National Institute of Economic and Social Research director Jonathan Portes said economiesย benefittedย from more workers, but emphasisedย the difference between immigrants and refugees.

“What the Swedish experience tells us is that even in the short term, even when you have a very large influx of refugees, there is a perception this is an impossible burden on the state,” he told The Independent.

“But in the short term it increases growth.”

He saidย the Swedish government neededย to have a long-term strategy to successfully integrate refugees and continue the growth.

But the news came asย Theresa May’s government announcedย plans to curb immigrationย and the numberย of skilled migrant workers entering the UK – policies Mr Portes saidย should be reversedย because they willย reduce economic growth.

“The Government has just announced policies which their own economists have said will reduce productivity and will reduce exports,” he said.

“That is the last thing that the economy needs.

“The Government perceives that it is important to reduce immigration, even if that reduction in immigration reduces economic growth.

“Migrants benefit the UK economy already but the Government wants to reduce migration, even if it means harming the economy.

“If anyone was in a position to think about how to improve things, they would reverse these policy announcements. They are entirely negative for the UK economy.”

Conservative Party plans to slow immigration and could compel firms employing from abroad to use tests to ensure foreign workers do not take jobs โ€œBritish people could doโ€.

Businesses may even be ‘named and shamed’ย by being forced to publish what proportion of their workforce comes from overseas.

Foreigners looking for work driving taxis could be faced with mandatory immigration checks and overseas students will also be hit by much tougher rules.

Source: How immigration is fuelling Sweden’s economic boom | The Independent

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