Economy
Economy - overview: 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 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.
GDP: purchasing power parity - $184.3 billion (1996 est.)
GDP - real growth rate: 1.4% (1996 est.)
GDP - per capita: purchasing power parity - $20,800 (1996 est.)
GDP - composition by sector: agriculture: 2% industry : 27% services: 71% (1993)
Inflation rate - consumer price index: 0.2% (September 1996)
Labor force: total: 4.552 million (84% unionized, 1992) by occupation: community, social and personal services 38.3%, mining and manufacturing 21.2%, commerce, hotels, and restaurants 14.1%, banking, insurance 9.0%, communications 7.2%, construction 7.0%, agriculture, fishing, and forestry 3.2% (1991)
Unemployment rate: 8% (September 1996) plus about 6% in training programs
Budget: revenues: $109.4 billion expenditures : $146.1 billion, including capital expenditures of $NA (FY95/96)