Thursday, November 1, 2012

Importing garbage...the new trend!

Good morning economists. In conventional balance of payments entries, we usually observe exports as cash inflows (hence positive transactions) and imports as cash outflows (negative transactions). Sweden is probably the first country in the globe that has managed to convert an import into a cash inflows.

Apparently Sweden is importing junk and it is paid from other countries to do so. Sweden's incinerators are burning garbage in order to provide energy to more than 100.000 households. Sweden is running out of garbage fast and it will need to import 1,76 million tons of garbage from other countries to continue its energy production.
 Ingenious! Isn't this the reason that Sweden is one of the most successful economies during recession periods? Could it be that this is the only example of an "opportunity benefit" instead of cost?

Have a nice day!

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