Sweden: Economic and Political Outline
Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline
The international financial crisis plunged Sweden into severe recession, as the country depends heavily on international trade. After contracting by -5.1% in 2009, Swedish economy recovered in 2010, with an estimated GDP growth of 4.4%, driven by household consumption and a resumption of international trade. The unfavorable international context suggests a slight groth in 2011.
In the context of a recovery, the government’s priority, announced as part of the 2011 Budget, is to again aim for full employment. The announced measures seek to combat exclusion, improve the education system and tamper the effects of the crisis by expanding high-quality welfare services. Monetary policy will remain expansionist.
Sweden has one of the highest standards of living in the world. However, unemployment has become its curse, with one of the highest rates in Europe (8.2% in 2010 according to the estimates).
| Main Indicators | 2009 | 2010 | 2011 | 2012 (e) | 2013 (e) |
| GDP (billions USD) | 403.61 | 458.73 | 571.57e | 629.69 | 671.22 |
| GDP (Constant Prices, Annual % Change) | -5.3 | 5.7e | 4.4 | 3.8 | 3.5 |
| GDP per Capita (USD) | 43,404 | 49,183e | 61,098 | 67,110 | 71,322 |
| General Government Balance (in % of GDP) | 1.2 | 1.4e | 1.2e | 1.2 | 1.5 |
| General Government Gross Debt (in % of GDP) | 42.8 | 39.7e | 36.0 | 32.6 | 29.2 |
| Inflation Rate (%) | 2.0 | 1.9e | 3.0e | 2.5 | 2.0 |
| Unemployment Rate (% of the Labor Force) | 8.3 | 8.4 | 7.4 | 6.6 | 5.8 |
| Current Account (billions USD) | 28.44 | 29.01e | 33.32e | 33.18 | 34.04 |
| Current Account (in % of GDP) | 7.0 | 6.3 | 5.8e | 5.1 | - |
Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data
Note: (e) Estimated Data
Agriculture represents less of 2% of the GDP. The main agricultural products are cereals, dairy products, meat, wood and potatoes. The country has a wealth of natural resources: forests, iron, lead, copper, zinc and hydroelectric energy.
The industrial sector contributes to slightly over a quarter of the GDP. It is dominated by groups such as Volvo, Saab, Ericsson, ABB, AstraZeneca, Electrolux, Ikea, H&M, etc. Sweden's main manufacturing activities are processing wood, paper, electronic equipment, industrial food processing, pharmaceutical products, etc. The new technologies and biotechnologies sectors are of significant importance in the economy.
The tertiary sector employs more than three quarters of the active workforce, it contributes more than 70% of the GDP, and is maintained by telecommunications and IT equipment
| Breakdown of Economic Activity By Sector | Agriculture | Industry | Services |
| Employment By Sector (in % of Total Employment) | 2.2 | 20.1 | 77.4 |
| Value Added (in % of GDP) | 1.8 | 25.3 | 72.9 |
| Value Added (Annual % Change) | 0.5 | -14.3 | -1.7 |
Source: World Bank - Last Available Data.
| Monetary Indicators | 2006 | 2007 | 2008 | 2009 | 2010 |
| Swedish Krona (SEK) - Average Annual Exchange Rate For 1 USD | 7.38 | 6.76 | 6.59 | 7.65 | 7.21 |
Source: World Bank - Last Available Data.
Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation
See the Country Risk Analysis Provided By Ducroire.
Sweden is very open to foreign trade, which represents more than 90% of the GDP.The EU is reinforcing its position as primary partner. In general, half the exports are destined for the EU and the most of imports come from there. Trade with neighboring Northern Baltic countries and Russia has increased rapidly, while exports to China and India show a substantial drop. Trade in motor vehicles and metals is very dynamic. The government supports Swedish companies' activity in strategic markets. The Swedish trade balance is expected to remain in surplus, even if it has been affected by the fall in international trade caused by the effects of the financial crisis.
| Foreign Trade Indicators | 2006 | 2007 | 2008 | 2009 | 2010 |
| Imports of Goods (million USD) | 127,547 | 153,226 | 168,503 | 120,077 | 147,932 |
| Exports of Goods (million USD) | 147,793 | 168,817 | 183,327 | 130,958 | 158,416 |
| Imports of Services (million USD) | 39,294 | 47,347 | 53,847 | 45,309 | 48,085 |
| Exports of Services (million USD) | 49,142 | 62,677 | 70,340 | 58,556 | 63,605 |
| Imports of Goods and Services (Annual % Change) | 9.0 | 9.0 | 2.9 | -13.2 | - |
| Exports of Goods and Services (Annual % Change) | 8.9 | 5.6 | - | - | - |
| Imports of Goods and Services (in % of GDP) | 43.0 | 44.4 | 46.5 | 41.9 | - |
| Exports of Goods and Services (in % of GDP) | 51.1 | 51.9 | 53.4 | 48.8 | - |
| Trade Balance (million USD) | 21,790 | 17,774 | 15,412 | 13,043 | 10,879 |
| Trade Balance (Including Service) (million USD) | 32,166 | 33,220 | 32,625 | 27,899 | 27,158 |
| Foreign Trade (in % of GDP) | 94.1 | 96.3 | 99.9 | 90.7 | - |
Source: WTO - World Trade Organization ; World Bank , Last Available Data
| Main Customers (% of Exports) |
2010 |
| Norway | 10.0% |
| Germany | 10.0% |
| United Kingdom | 7.4% |
| United States | 7.3% |
| Denmark | 6.5% |
| See More Countries | 58.8% |
| Main Suppliers (% of Imports) |
2010 |
| Germany | 18.2% |
| Norway | 9.0% |
| Denmark | 8.3% |
| Netherlands | 6.5% |
| United Kingdom | 5.7% |
| See More Countries | 52.4% |
Source: Comtrade, Last Available Data
Source: Comtrade, Last Available Data
Source: Worldwide Press Freedom Index 2010, Reporters Without Borders
Map of freedom 2010
Source: Freedom House
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Last Updates: January 2012