Later this vulnerability became a boon for Sweden, as the strong upturn in global trade after the crisis benefited Sweden more than many other countries due to its high export share. But the recovery was not only led by exports. As I said initially, Sweden was well prepared to confront the crisis as public finances were strong, unlike much of the euro area and the United States. In both these regions the budget deficit averaged 2 per cent of GDP in the  1  For a more detailed discussion of the Swedish fiscal consolidation see Göran Persson (1996), “The Swedish Experience in Reducing Budget Deficits and Debt”, Economic Review, First Quarter 1996, Federal Reserve Bank of Kansas. BIS central bankers’ speeches  1  10 years leading up to the recent crisis, while Sweden had, on average, a surplus of over 1 per cent; in line with the surplus target I mentioned previously. Strong public finances limit the need for fiscal restraint during and after a crisis. While in other countries the fiscal stimulus needed during the crisis was widespread, in Sweden the fiscal stimulus was more targeted to the labour market and to those sectors that were more strongly hit. In addition to this, Sweden has had a high level of household saving and a relatively strong increase in disposable incomes in recent years. This combination has also enabled a high rate of growth in private consumption during and after the crisis.
In addition, efforts to enhance transparency have not progressed as well as I myself and many market participants had hoped. 8 There have of course been some positive developments, such as the development by BZW of Property Investment Certificates, the growing importance of data produced by the Investment Property Databank, and the development by RICS of new valuation standards in the revised Red Book. Some of the trade associations, such as the IPF and the Association of Property Bankers, have also developed well and have begun to play a very important role. I believe the Bank of England’s Property Forum, set up in 1993 to bring all sides of the industry together, has also made a positive contribution. But these developments cannot obscure the fact that, on the whole, this period has been one of disappointment. Property’s poor performance in the past few years has undoubtedly caused some to consider very carefully whether or not they wish to remain in property. The Present 9 Are we turning a corner? The commercial property market is important to the UK economy in many ways. Property and related activities such as construction make a significant contribution to GDP. The availability of property of the right standards at the right price is very important to UK competitiveness. This puts some onus on landlords to provide what is wanted. It is equally important that the planning authorities should continue to provide a consistent and flexible planning framework in which developers and landlords can operate and earn a satisfactory return.