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.

Economy Overview

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 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 as deteriorating global conditions reduced export demand and consumption. On 3 February 2009, the Swedish Government announced a $6 billon rescue package for the banking sector.

GDP (purchasing power parity):

$345.1 billion (2008 est.)
country comparison to the world: 33
$346.5 billion (2007 est.)
$337.4 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate):

$479 billion (2008 est.)

GDP - real growth rate:

-0.4% (2008 est.)
country comparison to the world: 202
2.7% (2007 est.)
4.5% (2006 est.)

GDP - per capita (PPP):

$38,200 (2008 est.)
country comparison to the world: 25
$38,400 (2007 est.)
$37,400 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector:

agriculture: 1.6%
industry: 28%
services: 70.5% (2008 est.)

Labor force:

4.897 million (2008 est.)
country comparison to the world: 76

Labor force - by occupation:

agriculture: 1.1%
industry: 28.2%
services: 70.7% (2007 est.)

Unemployment rate:

6.2% (2008 est.)
country comparison to the world: 77
6.1% (2007 est.)

Investment (gross fixed):

19.5% of GDP (2008 est.)
country comparison to the world: 116

Budget:

revenues: $259.9 billion
expenditures: $248.1 billion (2008 est.)

Inflation rate (consumer prices):

3.5% (2008 est.)
country comparison to the world: 50
2.2% (2007 est.)

Commercial bank prime lending rate:

NA% (31 December 2008)
country comparison to the world: 140
4% (31 December 2007)

Stock of domestic credit:

$549 billion (31 December 2008)
country comparison to the world: 19
$630.8 billion (31 December 2007)

Agriculture - products:

barley, wheat, sugar beets; meat, milk

Industries:

iron and steel, precision equipment (bearings, radio and telephone parts, armaments), wood pulp and paper products, processed foods, motor vehicles

Industrial production growth rate:

-1.8% (2008 est.)
country comparison to the world: 150

Oil - production:

3,572 bbl/day (2007 est.)
country comparison to the world: 97

Natural gas - production:

0 cu m (2007 est.)
country comparison to the world: 127

Current account balance:

$40.32 billion (2007 est.)
country comparison to the world: 11
$38.42 billion (2007 est.)

Exports:

$185.9 billion (2008 est.)
country comparison to the world: 26
$170.5 billion (2007 est.)

Exports - commodities:

machinery 35%, motor vehicles, paper products, pulp and wood, iron and steel products, chemicals

Exports - partners:

Germany 10.4%, Norway 9.5%, Denmark 7.4%, UK 7.3%, Finland 6.3%, Netherlands 5.1%, France 4.9%, Belgium 4.4% (2008)

Imports:

$167.8 billion (2008 est.)
country comparison to the world: 27
$152.2 billion (2007 est.)

Imports - commodities:

machinery, petroleum and petroleum products, chemicals, motor vehicles, iron and steel; foodstuffs, clothing

Imports - partners:

Germany 17.5%, Denmark 9.4%, Norway 8.6%, UK 6.2%, Finland 5.7%, Netherlands 5.6%, France 5%, Russia 4.4%, China 4.2% (2008)

Debt - external:

$617.3 billion (31 December 2008)
country comparison to the world: 17
$598.2 billion (31 December 2007)

Stock of direct foreign investment - at home:

$290.4 billion (31 December 2008 est.)
country comparison to the world: 16
$252.3 billion (31 December 2007 est.)

Stock of direct foreign investment - abroad:

$333.9 billion (2008 est.)
country comparison to the world: 13
$306.4 billion (31 December 2007 est.)

Exchange rates:

Swedish kronor (SEK) per US dollar - 6.4074 (2008 est.), 6.7629 (2007), 7.3731 (2006), 7.4731 (2005), 7.3489 (2004)

Source: CIA - The World Factbook