Economic overview Sweden, in 36 editions.

Aided by a long period of peace and neutrality during World War I through World War II, Sweden has achieved an enviable standard of living under a mixed system of high-tech capitalism and extensive welfare benefits. It has essentially full employment, a modern distribution system, excellent internal and external communications, and a skilled and intelligent labor force. Timber, hydropower, and iron ore constitute the resource base of an economy that is heavily oriented toward foreign trade. Privately owned firms account for about 90% of industrial output, of which the engineering sector accounts for 50% of output and exports. As For some observers, the 1990s open, however, Sweden faces serious Swedish model has succeeded in making economic problems: long waits for adequate housing, efficiency and social egalitarianism complementary, rather than competitive, goals. Others argue that the decay Swedish model is on the verge of collapsing by pointing to the work ethic, serious economic problems Sweden faces in 1991: high inflation and absenteeism, growing unemployment and deficits, and declining international competitiveness. In 1990, to improve the economy, the government approved a loss of competitive edge mandate for Sweden to seek EC membership and an austerity and privatization package and implemented a major tax reform. These reforms may succeed in international markets. turning the economy around in 1992.

Aided by a long period of peace and neutrality during World War I through
World War II, Sweden has achieved an enviable standard of living under a
mixed system of high-tech capitalism and extensive welfare benefits. It has
essentially full employment, a modern distribution system, excellent
internal and external communications, and a skilled labor force. Timber,
hydropower, and iron ore constitute the resource base of an economy that is
heavily oriented toward foreign trade. Privately owned firms account for
about 90% of industrial output, of which the engineering sector accounts for
50% of output and exports. For some observers, In the Swedish model last few years, however, this
extraordinarily favorable picture has succeeded been clouded by inflation, growing
absenteeism, and a gradual loss of competitiveness in making international markets.
The new center-right government, facing a sagging economic efficiency and social egalitarianism complementary, rather than competitive, goals. Others argue that the Swedish model situation which
is on the verge of collapsing by pointing unlikely to the serious improve until 1993, is pushing full steam ahead with economic problems Sweden faces in 1991: high inflation and absenteeism, growing unemployment and deficits,
reform proposals to end Sweden's recession and declining international competitiveness. In 1990, to improve the economy, the government approved a mandate prepare for Sweden to seek possible EC
membership in 1995. The free-market-oriented reforms are designed to spur
growth, maintain price stability, lower unemployment, create a more
efficient welfare state, and an austerity further adapt to EC standards. The measures
include: cutting taxes, particularly the value-added tax (VAT) and privatization package levies on
new and implemented a major tax reform. These reforms small business; privatization; liberalizing foreign ownership
restrictions; and opening the welfare system to competition and private
alternatives, which the government will still finance. Growth is expected to
remain flat in 1992, but increase slightly in 1993, while inflation should
remain around 3% for the next few years. On the down side, unemployment may succeed
climb to slightly over 4% in turning 1993, and the economy around budget deficit will reach nearly
$9 billion in 1992.

Aided by a long period of peace and neutrality during World War I through
World War II, Sweden has achieved an enviable standard of living under a
mixed system of high-tech capitalism and extensive welfare benefits. It has
essentially full employment, a modern distribution system, excellent
internal and external
communications, and a skilled labor force. Timber,
hydropower, and iron ore
constitute the resource base of an economy that is
heavily oriented toward
foreign trade. Privately owned firms account for
about 90% of industrial
output, of which the engineering sector accounts for
50% of output and
exports. In the last few years, however, this
extraordinarily favorable
picture has been clouded by inflation, growing
absenteeism, unemployment, and a gradual
loss of competitiveness in international markets. Although Prime Minister
The new BILDT'S center-right government, facing a sagging economic situation which
is unlikely minority coalition had hoped to improve until 1993, is pushing full steam charge ahead with economic
reform proposals to end Sweden's recession and to prepare for possible EC
membership in 1995. The free-market-oriented reforms are designed to spur
growth, maintain price stability, lower unemployment, create reforms, a more skyrocketing budget deficit - almost 13% of
efficient welfare state, GDP in FY94 projections - and further adapt to EC standards. The measures record unemployment have forestalled many of
include: cutting taxes, particularly the value-added tax (VAT) and levies on plans. Unemployment in 1993 is forecast at around 7% with another 5% in
new and small business; privatization; liberalizing job training. Continued heavy foreign ownership exchange speculation forced the
restrictions; government to cooperate in late 1992 with the opposition Social Democrats on
two crisis packages - one a severe austerity pact and opening the welfare system other a program to competition and private
alternatives, spur industrial competitiveness - which the government will still finance. Growth is expected to basically set economic policy
remain flat in through 1997. In November 1992, but increase slightly in 1993, while inflation should Sweden broke its tie to the EC's ECU, and
remain around 3% for the next few years. On krona has since depreciated around 2.5% against the down side, unemployment may dollar. The
climb to slightly over 4% government hopes the boost in 1993, and export competitiveness from the depreciation
will help lift Sweden out of its 3-year recession. To curb the budget
deficit will reach nearly and bolster confidence in the economy, BILDT continues to propose
$9 billion cuts in 1992. welfare benefits, subsidies, defense, and foreign aid. Sweden
continues to harmonize its economic policies with those of the EC in
preparation for concluding its EC membership bid by 1995.

Aided by a long period of peace and neutrality during World War I through
through World War II, Sweden has achieved an enviable standard of
living under a
mixed system of high-tech capitalism and extensive
welfare benefits. It has
a modern distribution system, excellent
internal and external
communications, and a skilled labor force.
Timber, hydropower, and iron ore
constitute the resource base of an
economy that is heavily oriented toward
foreign trade. Privately owned
firms account for about 90% of industrial
output, of which the
engineering sector accounts for 50% of output and
exports. In the last
few years, however, this extraordinarily favorable
picture has been
clouded by inflation, growing unemployment, and a gradual
loss of
competitiveness in international markets. Although Prime Minister
BILDT'S BILDT's center-right minority coalition had hoped to charge ahead with
free-market-oriented reforms, a skyrocketing budget deficit - almost 13% of
14% of GDP in FY94 projections - and record unemployment have
forestalled many of
the plans. Unemployment in 1993 is forecast estimated at
around 7% 8% with another 5% in
job training. Continued heavy foreign
exchange speculation forced the
government to cooperate in late 1992
with the opposition Social Democrats on
two crisis packages - one a
severe austerity pact and the other a program to
spur industrial
competitiveness - which basically set economic policy
through 1997. In
November 1992, Sweden broke its tie to the EC's ECU, and
the krona has
since depreciated around 2.5% about 25% against the dollar. The
government hopes
the boost in export competitiveness from the depreciation
will help
lift Sweden out of its 3-year recession. To curb the budget
deficit
and bolster confidence in the economy, BILDT continues to propose
cuts
in welfare benefits, subsidies, defense, and foreign aid. Sweden
continues to harmonize its economic policies with those of the EC EU in
preparation for concluding its EC scheduled membership bid by 1995. early 1995, which will help to
broaden European economic unity.

Aided by a long period of peace and neutrality during World
War I
through World War II, Sweden has achieved an enviable standard of
of living under a mixed system of high-tech capitalism and extensive
welfare benefits. It has a modern distribution system, excellent
internal and external communications, and a skilled labor force.
Timber, hydropower, and iron ore constitute the resource base of an
economy that is heavily oriented toward foreign trade. Privately owned
firms account for about 90% of industrial output, of which the
engineering sector accounts for 50% of output and exports. In 1990,
agriculture accounted for only 1.2% of GDP and 1.9% of the last jobs,
Sweden being about 50% sufficient in most products. In the last few
years, however, this extraordinarily favorable picture has been
clouded by inflation, growing unemployment, and a gradual loss of
competitiveness in international markets. Although Prime Minister
BILDT's center-right minority coalition had hoped to charge ahead with
free-market-oriented reforms, a skyrocketing budget deficit - almost about
14% of GDP in FY94 FY93/94 projections - and record unemployment have
forestalled many of the plans. Unemployment in 1993 1994 is estimated at
around 8% 9% with another 5% in job training. Continued heavy foreign
exchange speculation forced the government to cooperate in late 1992
with the opposition Social Democrats on two crisis packages - one a
severe austerity pact and the other a program to spur industrial
competitiveness - which basically set economic policy through 1997. In
November 1992, Sweden broke its tie to the EC's ECU, and the krona has
since depreciated about 25% against the dollar. The government hopes
the boost in export
competitiveness from the depreciation will help
helped lift Sweden out of its
3-year recession. To curb the budget deficit
and bolster confidence in
the economy, BILDT continues to propose the new Social Democratic government is proposing cuts
in
welfare benefits, subsidies, defense, and foreign aid. Sweden has
continues to harmonize harmonized its economic policies with those of the EU in
preparation for scheduled membership by early 1995, EU, which will help to it joined
broaden European economic unity. at the start of 1995.

Aided by a long period of peace and neutrality during World
War
I through World War II, Sweden has achieved an enviable standard
of
living under a mixed system of high-tech capitalism and extensive
welfare benefits. It has a modern distribution system, excellent
internal and external communications, and a skilled labor force.
Timber, hydropower, and iron ore constitute the resource base of an
economy that is heavily oriented toward foreign trade. Privately owned
Privately-owned firms
account for about 90% of industrial output, of which the
engineering
sector accounts for 50% of output and exports. In 1990,
1993, agriculture
accounted for only 1.2% 2% of GDP and 1.9% 2% of the jobs,
Sweden being about 50% sufficient in most products. jobs. In the last few
recent years,
however, this extraordinarily favorable picture has been
clouded by
budgetary difficulties, inflation, growing unemployment, and a
gradual loss of
competitiveness in international markets. Although Prime Minister
BILDT's center-right minority coalition had hoped to charge ahead with
free-market-oriented reforms, a skyrocketing budget deficit - about
14% of GDP in FY93/94 projections - and record unemployment have
forestalled many of the plans. Unemployment in 1994 is estimated at
around 9% with another 5% in job training. Continued heavy foreign
exchange speculation forced the government to cooperate in late 1992
with the opposition Social Democrats on two crisis packages - one a
severe austerity pact and the other a program to spur industrial
competitiveness - which basically set economic policy through 1997. In
November 1992, Sweden broke its tie to the EC's ECU, ECU (European
Currency Unit), and depreciation of the krona has
since depreciated about 25% against the dollar. The boost in boosted export
competitiveness from the depreciation and helped lift Sweden out of its
3-year 1991-93 recession.
To curb the budget deficit and bolster confidence in
the economy,
the new Social Democratic government is proposing cuts adopted an adjustment program in November 1994 that
welfare benefits, subsidies, defense, aims to eliminate the government budget deficit and foreign aid. to stabilize the
debt to GDP ratio. Sweden has
harmonized its economic policies with
those of the EU, which it joined
at the start of 1995.

Aided by peace and neutrality during World War for the whole
I through World War II, twentieth century, Sweden has achieved an enviable standard of
living
under a mixed system of high-tech capitalism and extensive
welfare
benefits. It has a modern distribution system, excellent
internal and
external communications, and a skilled labor force.
Timber,
hydropower, and iron ore constitute the resource base of an
economy
heavily oriented toward foreign trade. Privately-owned Privately owned firms
account
for about 90% of industrial output, of which the engineering
sector
accounts for 50% of output and exports. In 1993, agriculture
accounted Agriculture accounts for only
2% of GDP and 2% of the jobs. In recent years,
however, this
extraordinarily favorable picture has been clouded by
budgetary
difficulties, inflation, growing unemployment, and a
gradual loss of
competitiveness in international markets. In
November 1992, Sweden broke its tie to the EC's ECU (European
Currency Unit), and depreciation of the krona has boosted export
competitiveness and helped lift Sweden out of its 1991-93 recession.
To curb the budget deficit
and bolster confidence in the economy,
the government adopted an
adjustment program in November 1994 that
aims to eliminate the
government budget deficit and to stabilize the
debt to GDP ratio.
Sweden has harmonized its economic policies with
those of the EU,
which it joined at the start of 1995.

Aided by peace and neutrality for the whole
twentieth century, Sweden has achieved an enviable standard of living
under a mixed system of high-tech capitalism and extensive welfare
benefits. It has a modern distribution system, excellent internal and
external communications, and a skilled labor force. Timber,
hydropower, and iron ore constitute the resource base of an economy
heavily oriented toward foreign trade. Privately owned firms account
for about 90% of industrial output, of which the engineering sector
accounts for 50% of output and exports. Agriculture accounts for only
2% of GDP and 2% of the jobs. In recent years, however, this
extraordinarily favorable picture has been clouded by budgetary
difficulties, inflation, growing high unemployment, and a gradual loss of
competitiveness in international markets. To curb the budget deficit
and bolster confidence in the economy, the government adopted an
adjustment program in November 1994 that aims to eliminate the
government budget deficit and to stabilize the debt to GDP ratio.
Sweden has harmonized its economic policies with those of the EU,
which it joined at the start of 1995. Sweden has decided not to join
the EMU (European Monetary Union). Annual GDP growth should edge up to
2.5% in 1998-99.

Aided by peace and neutrality for the whole
twentieth century, Sweden has achieved an enviable standard of living
living under a mixed system of high-tech capitalism and extensive welfare
welfare benefits. It has a modern distribution system, excellent
internal and
external communications, and a skilled labor force. Timber,
Timber, hydropower, and iron ore constitute the resource base of an economy
economy heavily oriented toward foreign trade. Privately owned firms account
account for about 90% of industrial output, of which the engineering sector
sector accounts for 50% of output and exports. Agriculture accounts
for only
2% of GDP and 2% of the jobs. In recent years, however, this
this extraordinarily favorable picture has been clouded by budgetary
difficulties, inflation, high unemployment, and a gradual loss of
competitiveness in international markets. To curb the budget deficit
and bolster confidence in the economy, the government adopted an
adjustment program in November 1994 that aims to eliminate the
government budget deficit and to stabilize the debt to GDP ratio.
Sweden has harmonized its
economic policies with those of the EU,
which it joined at the start
of 1995. Sweden has decided not to join
the EMU (European Monetary Union). euro system at its outset in
January 1999 but plans to hold a referendum in 2000 on whether to
join. Annual GDP growth should edge up to
2.5% is forecast for 2.2% and 2.6% in 1998-99. 1999 and
2000 respectively. Budgetary problems and shaky business confidence
will constrain government plans to reduce unemployment.

Aided by peace and neutrality for the whole
twentieth century, Sweden has achieved an enviable standard of
living under a mixed system of high-tech capitalism and extensive
welfare benefits. It has a modern distribution system, excellent
internal and external communications, and a skilled labor force.
Timber, hydropower, and iron ore constitute the resource base of an
economy heavily oriented toward foreign trade. Privately owned firms
account for about 90% of industrial output, of which the engineering
sector accounts for 50% of output and exports. Agriculture accounts
for only 2% of GDP and 2% of the jobs. In recent years, however,
this extraordinarily favorable picture has been clouded by budgetary
difficulties, inflation, high unemployment, and a gradual loss of
competitiveness in international markets. Sweden has harmonized its
economic policies with those of the EU, which it joined at the start
of 1995. Sweden decided not to join the euro system at its outset in
January 1999 but plans to hold a referendum in 2000 on whether to
join. Annual GDP growth is forecast for 2.2% and 2.6% 4% in 1999 and
2000 respectively. Budgetary problems and shaky business confidence
will constrain government plans to reduce unemployment. 2000, buttressed by solid consumer confidence.

Aided by peace and neutrality for the whole twentieth century, Sweden has achieved an enviable standard of living under a mixed system of high-tech capitalism and extensive welfare benefits. It has a modern distribution system, excellent internal and external communications, and a skilled labor force. Timber, hydropower, and iron ore constitute the resource base of an economy heavily oriented toward foreign trade. Privately owned firms account for about 90% of industrial output, of which the engineering sector accounts for 50% of output and exports. Agriculture accounts for only 2% of GDP and 2% of the jobs. In recent years, however, this extraordinarily favorable picture has been somewhat clouded by budgetary difficulties, inflation, high unemployment, and a gradual loss of competitiveness in international markets. Sweden has harmonized its economic policies with those of the EU, which it joined at the start of 1995. Sweden decided not to join the euro system at its outset in January 1999 but plans to hold a referendum in 2000 on whether to join. GDP growth is forecast for 4% in 2000, buttressed by solid consumer confidence. 2001.

Aided by peace and neutrality for the whole twentieth 20th century, Sweden has achieved an enviable standard of living under a mixed system of high-tech capitalism and extensive welfare benefits. It has a modern distribution system, excellent internal and external communications, and a skilled labor force. Timber, hydropower, and iron ore constitute the resource base of an economy heavily oriented toward foreign trade. Privately owned firms account for about 90% of industrial output, of which the engineering sector accounts for 50% of output and exports. Agriculture accounts for only 2% of GDP and 2% of the jobs. In recent years, however, this extraordinarily favorable picture has been somewhat clouded by budgetary difficulties, high unemployment, and The government's commitment to fiscal discipline resulted in a gradual loss of competitiveness substantial budgetary surplus in international markets. Sweden has harmonized its economic policies with those of the EU, 2001, which it joined at was cut by more than half in 2002, due to the start of 1995. GDP growth global economic slowdown, revenue declines, and spending increases. The Swedish central bank (the Riksbank) is forecast for 4% focusing on price stability with its inflation target of 2%. Growth should pick up to 2.3% in 2001. 2003, assuming a moderate global recovery.

Aided by peace and neutrality for the whole 20th century, Sweden has achieved an enviable standard of living under a mixed system of high-tech capitalism and extensive welfare benefits. It has a modern distribution system, excellent internal and external communications, and a skilled labor force. Timber, hydropower, and iron ore constitute the resource base of an economy heavily oriented toward foreign trade. Privately owned firms account for about 90% of industrial output, of which the engineering sector accounts for 50% of output and exports. Agriculture accounts for only 2% of GDP and 2% of the jobs. The government's commitment to fiscal discipline resulted in a substantial budgetary surplus in 2001, which was cut by more than half in 2002, due to the global economic slowdown, revenue declines, and spending increases. The Swedish central bank (the Riksbank) is focusing on price stability with its inflation target of 2%. Growth should pick up to 2.3% remained sluggish in 2003. On September 14, 2003, assuming a moderate global recovery. Swedish voters turned down entry into the euro system, concerned about the impact on democracy and sovereignty.

Aided by peace and neutrality for the whole 20th century, Sweden has achieved an enviable standard of living under a mixed system of high-tech capitalism and extensive welfare benefits. It has a modern distribution system, excellent internal and external communications, and a skilled labor force. Timber, hydropower, and iron ore constitute the resource base of an economy heavily oriented toward foreign trade. Privately owned firms account for about 90% of industrial output, of which the engineering sector accounts for 50% of output and exports. Agriculture accounts for only 2% of GDP and 2% of the jobs. The government's commitment to fiscal discipline resulted in a substantial budgetary surplus in 2001, which was cut by more than half in 2002, due to the global economic slowdown, revenue declines, declining revenue, and spending increases. increased spending. The Swedish central bank (the Riksbank) is focusing on price stability with its inflation target of 2%. Growth remained sluggish in 2003. On September 14, 2003, Swedish voters turned down entry into the euro system, concerned about the impact on democracy and sovereignty.

Aided by peace and neutrality for the whole 20th century, Sweden has achieved an enviable standard of living under a mixed system of high-tech capitalism and extensive welfare benefits. It has a modern distribution system, excellent internal and external communications, and a skilled labor force. Timber, hydropower, and iron ore constitute the resource base of an economy heavily oriented toward foreign trade. Privately owned firms account for about 90% of industrial output, of which the engineering sector accounts for 50% of output and exports. Agriculture accounts for only 2% of GDP and 2% of the jobs. The government's commitment to fiscal discipline resulted in a substantial budgetary surplus in 2001, which was cut by more than half in 2002, due to the global economic slowdown, declining revenue, and increased spending. The Swedish central bank (the Riksbank) is focusing focuses on price stability with its inflation target of 2%. Growth remained sluggish in 2003. 2003, but picked up in 2004. Presumably because of generous sicktime benefits, Swedish workers report in sick more often than other Europeans. On 14 September 14, 2003, Swedish voters turned down entry into the euro system, concerned about the impact on democracy and sovereignty.

Aided by peace and neutrality for the whole of the 20th century, Sweden has achieved an enviable standard of living under a mixed system of high-tech capitalism and extensive welfare benefits. It has a modern distribution system, excellent internal and external communications, and a skilled labor force. Timber, hydropower, and iron ore constitute the resource base of an economy heavily oriented toward foreign trade. Privately owned firms account for about 90% of industrial output, of which the engineering sector accounts for 50% of output and exports. Agriculture accounts for only 2% of GDP and 2% of the jobs. The government's commitment to fiscal discipline resulted in a substantial budgetary surplus in 2001, which was cut by more than half in 2002, due to the global economic slowdown, declining revenue, and increased spending. The Swedish central bank (the Riksbank) focuses on price stability with its inflation target of 2%. Growth remained sluggish in 2003, but picked up in 2004. 2004 and 2005. Presumably because of generous sicktime sick-leave benefits, Swedish workers report in sick more often than other Europeans. On 14 In September 2003, Swedish voters turned down entry into the euro system, concerned about the impact on democracy and sovereignty.

Aided by peace and neutrality for the whole of the 20th century, Sweden has achieved an enviable standard of living under a mixed system of high-tech capitalism and extensive welfare benefits. It has a modern distribution system, excellent internal and external communications, and a skilled labor force. Timber, hydropower, and iron ore constitute the resource base of an economy heavily oriented toward foreign trade. Privately owned firms account for about 90% of industrial output, of which the engineering sector accounts for 50% of output and exports. Agriculture accounts for only 2% 1% of GDP and 2% of jobs. employment. The government's commitment to fiscal discipline resulted in a substantial budgetary surplus in 2001, which was cut by more than half in 2002, 2002 due to the global economic slowdown, declining revenue, and increased spending. The Swedish central bank (the Riksbank) focuses on price stability with its inflation target of 2%. Growth remained sluggish in 2003, 2003 but picked up in 2004 and 2005. during 2004-06. Presumably because of generous sick-leave benefits, Swedish workers report in sick more often than other Europeans. In September 2003, Swedish voters turned down entry into the euro system, system concerned about the impact on democracy the economy and sovereignty.

Aided by peace and neutrality for the whole of the 20th century, Sweden has achieved an enviable standard of living under a mixed system of high-tech capitalism and extensive welfare benefits. It has a modern distribution system, excellent internal and external communications, and a skilled labor force. Timber, hydropower, and iron ore constitute the resource base of an economy heavily oriented toward foreign trade. Privately owned firms account for about 90% of industrial output, of which the engineering sector accounts for 50% of output and exports. Agriculture accounts for only 1% of GDP and 2% of employment. The government's commitment to fiscal discipline resulted Sweden is in the midst of a substantial budgetary surplus in 2001, which was cut sustained economic upswing, boosted by more than half in 2002 due to increased domestic demand and strong exports. This and robust finances have offered the global economic slowdown, declining revenue, center-right government considerable scope to implement its reform program aimed at increasing employment, reducing welfare dependence, and increased spending. streamlining the state's role in the economy. The Swedish central bank (the Riksbank) focuses on price stability with its inflation target of 2%. Growth remained sluggish government plans to sell $31 billion in 2003 but picked up state assets during 2004-06. Presumably because of generous sick-leave benefits, Swedish workers report in sick more often than other Europeans. the next three years to further stimulate growth and raise revenue to pay down the federal debt. In September 2003, Swedish voters turned down entry into the euro system concerned about the impact on the economy and sovereignty.

Aided by peace and neutrality for the whole of the 20th century, Sweden has achieved an enviable standard of living under a mixed system of high-tech capitalism and extensive welfare benefits. It has a modern distribution system, excellent internal and external communications, and a skilled labor force. In September 2003, Swedish voters turned down entry into the euro system concerned about the impact on the economy and sovereignty. Timber, hydropower, and iron ore constitute the resource base of an economy heavily oriented toward foreign trade. Privately owned firms account for about 90% of industrial output, of which the engineering sector accounts for 50% of output and exports. Agriculture accounts for only 1% of GDP and 2% of employment. Until 2008, Sweden is was in the midst of a sustained economic upswing, boosted by increased domestic demand and strong exports. This and robust finances have offered the center-right government considerable scope to implement its reform program aimed at increasing employment, reducing welfare dependence, and streamlining the state's role in the economy. The government plans to sell $31 billion in state assets during the next three years to further stimulate growth Despite strong finances and raise revenue to pay down underlying fundamentals, the federal debt. In September 2003, Swedish voters turned down entry economy slid into the euro system concerned about recession in the impact on third quarter of 2008 and growth continued downward in the economy fourth as deteriorating global conditions reduced export demand and sovereignty. consumption. On 3 February 2009, the Swedish Government announced a $6 billon rescue package for the banking sector.

Aided by peace and neutrality for the whole of the 20th century, Sweden has achieved an enviable standard of living under a mixed system of high-tech capitalism and extensive welfare benefits. It has a modern distribution system, excellent internal and external communications, and a skilled labor force. In September 2003, Swedish voters turned down entry into the euro system concerned about the impact on the economy and sovereignty. Timber, hydropower, and iron ore constitute the resource base of an economy heavily oriented toward foreign trade. Privately owned firms account for about 90% of industrial output, of which the engineering sector accounts for 50% of output and exports. Agriculture accounts for only little more than 1% of GDP and of employment. Until 2008, Sweden was in the midst of a sustained economic upswing, boosted by increased domestic demand and strong exports. This and robust finances offered the center-right government considerable scope to implement its reform program aimed at increasing employment, reducing welfare dependence, and streamlining the state's role in the economy. Despite strong finances and underlying fundamentals, the Swedish economy slid into recession in the third quarter of 2008 and growth continued downward in the fourth 2009 as deteriorating global conditions reduced export demand and consumption. On 3 February 2009, the Swedish Government announced Strong exports of commodities and a $6 billon rescue package for the return to profitability by Sweden's banking sector. sector drove the strong rebound in 2010.

Aided by peace and neutrality for the whole of the 20th century, Sweden has achieved an enviable standard of living under a mixed system of high-tech capitalism and extensive welfare benefits. It has a modern distribution system, excellent internal and external communications, and a highly skilled labor force. In September 2003, Swedish voters turned down entry into the euro system concerned about the impact on the economy and sovereignty. Timber, hydropower, and iron ore constitute the resource base of an economy heavily oriented toward foreign trade. Privately owned firms account for about 90% vast majority of industrial output, of which the engineering sector accounts for about 50% of output and exports. Agriculture accounts for little more than 1% of GDP and of employment. Until 2008, Sweden was in the midst of a sustained economic upswing, boosted by increased domestic demand and strong exports. This and robust finances offered the center-right government considerable scope to implement its reform program aimed at increasing employment, reducing welfare dependence, and streamlining the state's role in the economy. Despite strong finances and underlying fundamentals, the Swedish economy slid into recession in the third quarter of 2008 and growth continued downward in 2009 as deteriorating global conditions reduced export demand and consumption. Strong exports of commodities and a return to profitability by Sweden's banking sector drove the strong rebound in 2010. 2010, which continued in 2011, but growth slipped to 1.2% in 2012. The government proposed stimulus measures in 2012 to curb the effects of a global economic slowdown and boost employment and growth.

Aided by peace and neutrality for the whole of the 20th century, Sweden has achieved an enviable standard of living under a mixed system of high-tech capitalism and extensive welfare benefits. It has a modern distribution system, excellent internal and external communications, and a highly skilled labor force. In September 2003, Swedish voters turned down entry into the euro system concerned about the impact on the economy and sovereignty. Timber, hydropower, and iron ore constitute the resource base of an economy heavily oriented toward foreign trade. Privately owned firms account for vast majority of industrial output, of which the engineering sector accounts for about 50% of output and exports. Agriculture accounts for little more than 1% of GDP and of employment. Until 2008, Sweden was in the midst of a sustained economic upswing, boosted by increased domestic demand and strong exports. This and robust finances offered the center-right government considerable scope to implement its reform program aimed at increasing employment, reducing welfare dependence, and streamlining the state's role in the economy. Despite strong finances and underlying fundamentals, the Swedish economy slid into recession in the third quarter of 2008 and growth the contraction continued downward in 2009 as deteriorating global conditions reduced export demand and consumption. Strong exports of commodities and a return to profitability by Sweden's banking sector drove the strong rebound in 2010, which continued in 2011, but growth slipped to 1.2% in 2012. The government proposed stimulus measures in 2012 to curb the effects of a global economic slowdown and boost employment and growth.

Aided by peace and neutrality for the whole of the 20th century, Sweden has achieved an enviable standard of living under a mixed system of high-tech capitalism and extensive welfare benefits. It has a modern distribution system, excellent internal and external communications, and a highly skilled labor force. In September 2003, Swedish voters turned down entry into the euro system concerned about the impact on the economy and sovereignty. Timber, hydropower, and iron ore constitute the resource base of an economy heavily oriented toward foreign trade. Privately owned firms account for vast majority of industrial output, of which the engineering sector accounts for about 50% of output and exports. Agriculture accounts for little more than 1% of GDP and of employment. Until 2008, Sweden was in the midst of a sustained economic upswing, boosted by increased domestic demand and strong exports. This This, and robust finances finances, offered the center-right government considerable scope to implement its reform program aimed at increasing employment, reducing welfare dependence, and streamlining the state's role in the economy. Despite strong finances and underlying fundamentals, the Swedish economy slid into recession in the third quarter of 2008 and the contraction continued in 2009 as deteriorating global conditions reduced export demand and consumption. Strong exports of commodities and a return to profitability by Sweden's banking sector drove the strong a rebound in 2010, which continued in 2011, but growth slipped to 1.2% in 2012. The government proposed stimulus measures in 2012 to curb the effects of 2013, as a global result of continued economic slowdown and boost employment and growth. weakness in the EU - Sweden’s main export market.

Aided by peace and neutrality for the whole of the 20th century, Sweden has achieved an enviable standard of living under a mixed system of high-tech capitalism and extensive welfare benefits. It has a modern distribution system, excellent internal and external communications, and a highly skilled labor force. In September 2003, Swedish voters turned down entry into the euro system concerned about Sweden remains outside the Eurozone because of concerns over its impact on the economy country’s economy, welfare system, and sovereignty. Timber, hydropower, and iron ore constitute the resource base of an economy heavily oriented toward foreign trade. Privately owned firms account for vast majority of industrial output, of which the engineering sector accounts for about 50% of output and exports. output. Agriculture accounts for little more less than 1% of GDP and of employment. Until 2008, Sweden was in the midst of a sustained economic upswing, boosted by increased domestic demand and strong exports. This, and robust finances, offered the center-right government considerable scope to implement its reform program aimed at increasing employment, reducing welfare dependence, and streamlining the state's role in the economy. Despite strong finances and underlying fundamentals, the Swedish economy slid into recession in the third quarter of 2008 and the contraction continued in 2009 as deteriorating global conditions reduced export demand and consumption. Strong exports of commodities and a return to profitability by Sweden's banking sector drove a rebound in 2010, but GDP. Economic growth slipped slowed in 2013, as a result of continued economic weakness in the EU - Sweden’s main export market. market; however, Sweden’s economy experienced modest growth in 2014, with an adjusted real GDP growth that averaged 2.1%. Sweden’s economy is expected to grow modestly in 2015, although the country continues to struggle with deflationary pressure.

Aided by peace and neutrality for the whole of the 20th century, Sweden has achieved an enviable standard of living under a mixed system with its combination of high-tech free-market capitalism and extensive welfare benefits. Sweden remains outside the Eurozone because euro zone largely out of concerns over its impact on concern that joining the European Economic and Monetary Union would diminish the country’s economy, sovereignty over its welfare system, and sovereignty. system. Timber, hydropower, and iron ore constitute the resource base of an economy heavily oriented toward foreign trade. Privately owned firms account for vast majority of industrial output. Agriculture accounts for less than 1% of GDP.
Economic growth slowed in 2013, as a result of continued economic weakness in the EU - Sweden’s main export market; however, European trading partners; Sweden’s economy experienced modest growth in 2014, 2014-15, with an adjusted real GDP growth that averaged 2.1%. Sweden’s economy is expected to grow modestly in 2015, although the country above 2%, but continues to struggle with deflationary pressure.

Sweden has achieved an enviable standard of living with its combination of free-market capitalism and extensive welfare benefits. Sweden remains outside the euro zone largely out of concern that joining the European Economic and Monetary Union would diminish the country’s sovereignty over its welfare system. Timber, hydropower, and iron ore constitute the resource base of an economy heavily oriented toward foreign trade.
Economic growth slowed in 2013, as a result of continued economic weakness in Sweden’s European trading partners; Sweden’s economy experienced modest growth in 2014-15, 2014-16, with real GDP growth above 2%, but continues to struggle with deflationary pressure.

Sweden’s small, open, and competitive economy has been thriving and Sweden has achieved an enviable standard of living with its combination of free-market capitalism and extensive welfare benefits. Sweden remains outside the euro zone largely out of concern that joining the European Economic and Monetary Union would diminish the country’s sovereignty over its welfare system.
Timber, hydropower, and iron ore constitute the resource base of a manufacturing economy that relies heavily on foreign trade. Exports, including engines and other machines, motor vehicles, and telecommunications equipment, account for more than 44% of GDP. Sweden enjoys a current account surplus of about 5% of GDP, which is one of the highest margins in Europe.
GDP grew an estimated 3.3% in 2016 and 2017 driven largely by investment in the construction sector. Swedish economists expect economic growth to ease slightly in the coming years as this investment subsides. Global economic growth boosted exports of Swedish manufactures further, helping drive domestic economic growth in 2017. The Central Bank is keeping an eye on deflationary pressures and bank observers expect it to maintain an expansionary monetary policy in 2018. Swedish prices and wages have grown only slightly over the past few years, helping to support the country’s competitiveness.
In the short and medium term, Sweden’s economic challenges include providing affordable housing and successfully integrating migrants into the labor market.

high-income, largest Nordic economy; EU member but non-euro user; export-oriented does not use the euro; export-oriented, led by automotive, electronics, machinery machinery, and pharmaceuticals; highly ranked for competitiveness, R&D investments and governance; slowdown triggered by high inflation, weak consumption recovery, with falling inflation and financial tightening real wage growth balanced by risks from trade uncertainty