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

Industrial production growth rate 2.6% (1996)

Electricity - capacity 35.462 million kW (1995)

Electricity - production 142.913 billion kWh (1995)

Electricity - consumption per capita 15,996 kWh (1995)

Agriculture - products grains, sugar beets, potatoes; meat, milk

Exports
total value: $84.5 billion (f.o.b., 1996)
commodities: machinery, motor vehicles, paper products, pulp and wood, iron and steel products, chemicals, petroleum and petroleum products
partners: EU 59.1% (Germany 13.2%, UK 10.2%, Denmark 6.9%, France 5.1%), Norway 8.1%, Finland 4.8%, US 8.0% (1994)

Imports
total value: $66.6 billion (c.i.f., 1996)
commodities: machinery, petroleum and petroleum products, chemicals, motor vehicles, foodstuffs, iron and steel, clothing
partners: EU 62.6% (Germany 18.4%, UK 9.5%, Denmark 6.6%, France 5.5%), Finland 6.3%, Norway 6.1%, US 8.5% (1994)

Debt - external $66.5 billion (1994)

Economic aid
donor: ODA, $1.769 billion (1993)

Currency 1 Swedish krona (SKr) = 100 oere

Exchange rates Swedish kronor (SKr) per US$1 - 8.0085 (January 1998), 7.6349 (1997), 6.7060 (1996), 7.1333 (1995), 7.7160 (1994), 7.7834 (1993)

Fiscal year 1 January - 31 December (Sweden changed its fiscal year from 1 July - 30 June in 1995)

NOTE: The information regarding Sweden on this page is re-published from the 1998 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Sweden Economy 1998 information contained here. All suggestions for corrections of any errors about Sweden Economy 1998 should be addressed to the CIA.