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, 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.
GDP: purchasing power parity-$176.2 billion (1997 est.)
GDP-real growth rate: 2.1% (1997 est.)
GDP-per capita: purchasing power parity-$19,700 (1997 est.)
GDP-composition by sector: agriculture: 2% industry: 27% services: 71% (1993)
Inflation rate-consumer price index: 2% (1997 est.)
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: 6.6% plus about 5% in training programs (1997 est.)
Budget: revenues: $109.4 billion expenditures: $146.1 billion, including capital expenditures of $NA (FY95/96)
Industries: iron and steel, precision equipment (bearings, radio and telephone parts, armaments), wood pulp and paper products, processed foods, motor vehicles