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flag Sweden Sweden: Economic and Political Outline

Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline

Economic Indicators

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 2009201020112012 (e)2013 (e)
GDP (billions USD) 403.61458.73571.57e629.69671.22
GDP (Constant Prices, Annual % Change) -5.35.7e4.43.83.5
GDP per Capita (USD) 43,40449,183e61,09867,11071,322
General Government Balance (in % of GDP) 1.21.4e1.2e1.21.5
General Government Gross Debt (in % of GDP) 42.839.7e36.032.629.2
Inflation Rate (%) 2.01.9e3.0e2.52.0
Unemployment Rate (% of the Labor Force) 8.38.47.46.65.8
Current Account (billions USD) 28.4429.01e33.32e33.1834.04
Current Account (in % of GDP) 7.06.35.8e5.1-

Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data

Note: (e) Estimated Data

Main Sectors of Industry

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 20062007200820092010
Swedish Krona (SEK) - Average Annual Exchange Rate For 1 USD 7.386.766.597.657.21

Source: World Bank - Last Available Data.

 
 
Learn more about Market Analysis about Sweden on Globaltrade.net, the Directory for International Trade Services.
 

Indicator of Economic Freedom

Score:
71.9/100
Position:
Mostly free
World Rank:
22/179
Regional Rank:
10/42

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

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Foreign Trade in Figures

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 20062007200820092010
Imports of Goods (million USD) 127,547153,226168,503120,077147,932
Exports of Goods (million USD) 147,793168,817183,327130,958158,416
Imports of Services (million USD) 39,29447,34753,84745,30948,085
Exports of Services (million USD) 49,14262,67770,34058,55663,605
Imports of Goods and Services (Annual % Change) 9.09.02.9-13.2-
Exports of Goods and Services (Annual % Change) 8.95.6---
Imports of Goods and Services (in % of GDP) 43.044.446.541.9-
Exports of Goods and Services (in % of GDP) 51.151.953.448.8-
Trade Balance (million USD) 21,79017,77415,41213,04310,879
Trade Balance (Including Service) (million USD) 32,16633,22032,62527,89927,158
Foreign Trade (in % of GDP) 94.196.399.990.7-

Source: WTO - World Trade Organization ; World Bank , Last Available Data

 

Main Partner Countries

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

 

Main Products

Main Exports
(% of Exports)
2010
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 5.9%
Electrical apparatus for line telephony or line...Electrical apparatus for line telephony or line telegraphy, incl. line telephone sets with cordless handsets and telecommunication apparatus for carrier-current line systems or for digital line systems; videophones; parts thereof 5.5%
Medicaments consisting of mixed or unmixed...Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses "incl. those in the form of transdermal administration" or in forms or packings for retail sale (excl. goods of heading 3002, 3005 or 3006) 4.8%
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 3.4%
Parts and accessories for tractors, motor vehicles...Parts and accessories for tractors, motor vehicles for the transport of ten or more persons, motor cars and other motor vehicles principally designed for the transport of persons, motor vehicles for the transport of goods and special purpose motor vehicles of heading 8701 to 8705, n.e.s. 2.8%
See More Products 77.6%
Main Imports
(% of Imports)
2010
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 7.0%
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 4.5%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 4.0%
Parts and accessories for tractors, motor vehicles...Parts and accessories for tractors, motor vehicles for the transport of ten or more persons, motor cars and other motor vehicles principally designed for the transport of persons, motor vehicles for the transport of goods and special purpose motor vehicles of heading 8701 to 8705, n.e.s. 3.4%
Automatic data processing machines and units...Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, n.e.s. 2.4%
See More Products 78.7%

Source: Comtrade, Last Available Data

 
See More Products
More imports (Intracen Data)
More exports (Intracen Data)
 

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Sources of General Economic Information

Ministries
Ministry of Finance
Ministry of Foreign Affairs
Ministry of Enterprise, Energy and Communications
Ministry of Agriculture
Statistical Office
Statistics Sweden
Central Bank
Riksbank
Stock Exchange
Stockholm Stock Exchange
Search Engines
Yahoo Sweden
AltaVista.se
Evreka
Economic Portals
Einnews Sweden

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Political Outline

Executive Power
The King is the Head of State. The monarchy is hereditary. The King only has a ceremonial role. After a general election, the Prime Minister is first of all nominated by the parliamentary spokesperson, before being confirmed by the Parliament, for a four year term. The King plays no role in this process. The Prime Minister is the head of the government and he holds the executive power. The Council of Ministers is nominated by the Prime Minister, then submitted to the approval of Parliament.
Legislative Power
The Swedish legislative power is unicameral. The Parliament, called Riksdag, has 349 seats and its members are elected by universal suffrage on the basis of proportional representation for a four year term. The executive branch of government depends on the support of Parliament, often expressed by a vote of confidence. The Prime Minister can dissolve Parliament, even after receiving a vote of no confidence, unless elections took place less than three months before. Legislative power belongs both to the government and to Parliament. Swedish citizens enjoy considerable political rights.
Main Political Parties
Sweden has a multi-party system in which no party can take power by itself. That is why parties have to come to an agreement to form coalition governments. The main political parties in the country are:
- The SAP (Swedish Social Democratic Party) – the social democratic party, its electoral base is among blue collar workers, employees in the public sector and immigrants;
- The Centre Party, social liberals who concentrate on issues concerning agriculture, the environment and the countryside;
- The Christian Democratic Party, which is concerned with elderly people and family values;
- The Green Party, the ecological party which attracts young people and is opposed to membership of the EU;
- The Left Party - the socialist and feminist party, opposed to privatization and membership of the EU;
- The Liberal Party, advocates social liberalism and is considered to be centre right;
- The Moderate Party, the liberal conservative party.
Current Political Leaders
King: CARL XVI GUSTAF (since September 1973) – hereditary.
Prime Minister (incoming) : Fredrik REINFELDT (since October 2006) – Modern Party, head of a coalition with the Centre Party, the Liberal Party and the Christian Democrats.
Next Election Dates
Parliamentary elections: September 2014
 

Indicator of Freedom of the Press

World Rank:
5/178
Evolution:
same place compared to 2009

Source: Worldwide Press Freedom Index 2010, Reporters Without Borders

 

Indicator of Political Freedom

Ranking:
Free
Political Freedom:
1/7
Civil Liberties:
1/7

Map of freedom 2010
Source: Freedom House

 

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Last Updates: January 2012