Economy Sweden
Economy - overview:
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 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 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,
concerned about the impact on the economy and sovereignty.
GDP (purchasing power parity):
$285.1 billion (2006 est.)
GDP (official exchange rate):
$371.5 billion (2006 est.)
GDP - real growth rate:
4.2% (2006 est.)
GDP - per capita (PPP):
$31,600 (2006 est.)
GDP - composition by sector: agriculture: 1.1% industry: 28.1% services: 70.9% (2006 est.)
Labor force: 4.59 million (2006 est.)
Labor force - by occupation: agriculture: 2% industry: 24% services: 74% (2000 est.)
Unemployment rate:
5.6% (2006 est.)