| Economy of Sweden | |
| Currency | Swedish krona (SEK, kr) |
|---|---|
| Fiscal year | calendar year |
| Trade organisations | EU, OSCE, WTO, OECD and others |
| Statistics | |
| GDP (PPP) | $333. The European Union ( EU) is a political and economic union of twenty-seven member states, located primarily in The purchasing power parity ( PPP) theory uses the long-term equilibrium Exchange rate of two currencies to equalize their Purchasing power. 1 billion (2007 est. ) (33) |
| GDP growth | 3. There are three lists of Countries of the world sorted by their Gross domestic product (GDP (the value of all final goods and services produced within a nation 4% (2007 est. ) |
| GDP per capita | $36,900 (2007 est. ) |
| GDP by sector | agriculture: 1. 4%, industry: 29. 2%, services: 69. 4% (2007 est. ) |
| Inflation (CPI) | 1. In economics inflation or price inflation is a rise in the general level of prices of goods and services over a period of time CPI redirects here For other uses see CPI (disambiguation. A consumer price index ( CPI) is a measure of the average price of consumer 4% (2006 est. ) |
| Population below poverty line |
N/A |
| Labour force | 4. The poverty threshold, or poverty line, is the minimum level of Income deemed necessary to achieve an adequate Standard of living in a given country 66 million (2007 est. ) |
| Labour force by occupation |
agriculture: 2%, industry: 24%, services: 74% (2000 est. ) |
| Unemployment | 6,1 % (2007 est. Unemployment occurs when a person is available to work and currently seeking work but the person is without work. ) [1] |
| Main industries | telecommunications equipment, wood pulp and paper products, motor vehicles, pharmaceutical products, iron and steel |
| External | |
| Exports | $176. Wood pulp is a dry fibrous material prepared by chemically or mechanically separating the fibers which make up Wood. Paper is thin material mainly used for writing upon printing upon or packaging A motor Vehicle is a Machine which incorporates a motor (sometimes known as an Engine) and which is used for Transportation Iron (ˈаɪɚn is a Chemical element with the symbol Fe (ferrum and Atomic number 26 Steel is an Alloy consisting mostly of Iron, with a Carbon content between 0 5 billion (2007 est. ) |
| Export goods | machinery, motor vehicles, paper products, pulp and wood, iron and steel products, chemicals |
| Main export partners | Germany 9. Germany, officially the Federal Republic of Germany ( ˈbʊndəsʁepuˌbliːk ˈdɔʏtʃlant is a Country in Central Europe. 8%, United States 9. The United States of America —commonly referred to as the 3%, Norway 9,2%, United Kingdom 7. Norway ( Norwegian: Norge ( Bokmål) or Noreg ( Nynorsk) officially the Kingdom of Norway, is a Constitutional The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom, the UK or Britain,is a Sovereign state located 1%, Denmark 6. The Kingdom of Denmark ( ˈd̥ænmɑɡ̊ (archaic ˈd̥anmɑːɡ̊ commonly known as Denmark, is a country in the Scandinavian region of northern Europe 9%, Finland 6%, France 4. Finland, officially the Republic of Finland ( is a Nordic country situated in the Fennoscandian region of northern Europe. This article is about the country For a topic outline on this subject see List of basic France topics. 9%, Netherlands 4. The Netherlands ( Dutch:, ˈnedərlɑnt is the European part of the Kingdom of the Netherlands, which consists of the Netherlands the Netherlands 7%, Belgium 4. The Kingdom of Belgium is a Country in northwest Europe. It is a founding member of the European Union and hosts its headquarters as well as those 5% (2006) |
| Imports | $157. 2 billion (2007 est. ) |
| Import goods | machinery, petroleum and petroleum products, chemicals, motor vehicles, iron and steel; foodstuffs, clothing |
| Main import partners | Germany 17. 3%, Denmark 9. 1%, Norway 8. 2%, UK 6%, Netherlands 5. 8%, Finland 5. 7%, France 4,6%, Belgium 4. 1% (2006) |
| Public finances | |
| Public debt | 41. 9% of GDP (2007 est. ) |
| Revenues | $241. 2 billion (2007 est. ) |
| Expenses | $229. 1 billion (2007 est. ) |
| Economic aid | donor: ODA, $3. Official Development Assistance (ODA is a category of Development aid. 8 billion (April. 2007) |
| Main data source: CIA World Factbook All values, unless otherwise stated, are in US dollars |
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The Economy of Sweden is modern and highly industrialised. The United States dollar ( sign: $; code: USD) is the unit of Currency of the United States; it has also been "Sverige" redirects here For other uses see Sweden (disambiguation and Sverige (disambiguation. is a process of social and economic change whereby a human group is transformed from a Pre-industrial society into an industrial one It has a modern distribution system, excellent internal and external communications, and a skilled labor force. Communication is the process of conveying information from a sender to a receiver with the use of a medium in which the communicated information is understood the same way In Economics the people in the labor force are the suppliers of labor Timber, hydropower, and iron ore constitute the resource base of an economy heavily oriented toward foreign trade. Iron ores are rocks and Minerals from which Metallic Iron can be economically extracted Main industries include motor vehicles, telecommunications, pharmaceuticals and forestry. A drug, broadly speaking is any chemical substance that when absorbed into the body
Aided by peace and neutrality for the whole of the 20th century, Sweden has achieved an excellent standard of living under a mixed system of high-tech capitalism and extensive welfare benefits. The standard of living refers to the quality and quantity of goods and services available to people and the way these goods and services are distributed within a population This article refers specifically to the Welfare state of the United Kingdom. The country is known for its high taxes and large public sector. The public sector is the part of economic and administrative life that deals with the delivery of goods and services by and for the Government, whether national Regional Sweden has the second highest total tax revenue behind Denmark, as a share of the country's income. As of 2007, total tax revenue was 47. Year 2007 ( MMVII) was a Common year starting on Monday of the Gregorian calendar in the 21st century. 8% of GDP, down from 49. 1% 2006. [1]
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In the 19th century Sweden evolved from a largely agricultural economy into the beginnings of an industrialised, urbanised country. Poverty was still widespread in large sections of the population. However, incomes were sufficiently high to finance emigration to distant places, prompting a large portion of the country to leave, especially to the USA.
Economic reforms and the creation of a modern economic system, banks and corporations were enacted during the latter half of the 19th century. By the 1930s, Sweden had one of Europe's highest standards of living. Sweden declared itself neutral during both world wars, thereby avoiding much physical destruction like several other neutral countries.
The post-war boom propelled Sweden to greater economic prosperity, putting the country in third place in per capita GDP rankings by 1970. [2] Beginning in the 1970s and culminating with the deep recession of the early 1990s, Swedish standards of living developed less favourably than many other industrialized countries. Since the mid 1990s the economic performance has improved.
In 2006, Sweden had the world's ninth highest GDP per capita in nominal terms and was in 14th place in PPP terms (2005 figures)[3].
Sweden has had a unique economic model in the post World War 2 era, characterized by close cooperation between the government, labor unions and corporations. World War II, or the Second World War, (often abbreviated WWII) was a global military conflict which involved a majority of the world's nations, including The Swedish economy has extensive and universal social benefits funded by high taxes, close to 50% of GDP. [4] In the 1980s, a real estate and financial bubble formed, driven by a rapid increase in lending. A restructuring of the tax system, in order to emphasize low inflation combined with an international economic slowdown in the early the 1990s, caused the bubble to burst. Between 1990 and 1993 GDP fell by 5% and unemployment skyrocketed, causing the worst economic crisis in Sweden since the 1930s. In 1992 there was a run on the currency, the central bank briefly jacking up interest to 500% in an unsuccessful effort to defend the currency's fixed exchange rate. Sveriges Riksbank, or simply Riksbanken, is the Central bank of Sweden and the world's oldest central bank [5] Total employment fell by almost 10% during the crisis.
The welfare system that had been growing rapidly since the 1970s couldn't be sustained with a falling GDP, lower employment and larger welfare payments. In 1994 the government budget deficit exceeded 15% of GDP. The response of the government was to cut spending and institute a multitude of reforms to improve Sweden's competitiveness. When the international economic outlook improved combined with a rapid growth in the IT sector, which Sweden was able to capitalize from, the country was able to emerge from the crisis. [6][7]
However, the reforms enacted during the 1990s seem to have created a model in which extensive welfare benefits can be maintained in a global economy. [4]
The Swedish economic picture has brightened significantly since the severe recession in the early 1990s. A recession is a contraction phase of the Business cycle. The U Growth has been strong in recent years, and even though the growth in the economy slackened between 2001 and 2003, the growth rate has picked up since with an average growth rate of 3. 7% in the last three years. The long-run prospects for growth remain favorable. The inflation rate is low and stable, with projections for continued low levels over the next 2-3 years. In economics inflation or price inflation is a rise in the general level of prices of goods and services over a period of time
Since the mid-1990s the export sector has been booming, acting as the main engine for economic growth. Economic growth is the increase in the amount of the goods and services produced by an economy over time Swedish exports also have proven to be surprisingly robust. A marked shift in the structure of the exports, where services, the IT industry, and telecommunications have taken over from traditional industries such as steel, paper, and pulp, has made the Swedish export sector less vulnerable to international fluctuations. Steel is an Alloy consisting mostly of Iron, with a Carbon content between 0 Paper is thin material mainly used for writing upon printing upon or packaging Wood pulp is a dry fibrous material prepared by chemically or mechanically separating the fibers which make up Wood. However, at the same time the Swedish industry has received less money for its exports while the import prices have gone up. During the period 1995-2003 the export prices were reduced by 4% at the same time as the import prices climbed by 11%. The net effect is that the Swedish terms-of-trade fell 13%. [8]
The government budget has improved dramatically from a record deficit of more than 12% of GDP in 1993. The government of Sweden is a Constitutional monarchy based on Parliamentary democracy. In the last decade, from 1998 to present, the government has run a surplus every year, except for 2003 and 2004. The surplus for 2007 is expected to be 138 billion ($20b) kronor. [9] The new, strict budget process with spending ceilings set by parliament, and a constitutional change to an independent Central Bank, have greatly improved policy credibility. Budget (from French bougette, purse generally refers to a list of all planned expenses and revenues The Riksdag (officially Sveriges riksdag literally The National Diet of Sweden is the national legislative assembly of Sweden. The Swedish Constitution consists of four fundamental laws ( Swedish: grundlagar, singular grundlag) Sveriges Riksbank, or simply Riksbanken, is the Central bank of Sweden and the world's oldest central bank This can be seen in the long-term interest rate margin versus the Euro, which is negligible. Please update other articles as well to avoid contradiction within Wikipedia e
From the perspective of longer term fiscal sustainability, the long-awaited reform of old-age pensions entered into force in 1999. A pension is a steady income given to a person upon Retirement, typically in the form of a guaranteed annuity. This entails a far more robust system vis-à-vis adverse demographic and economic trends, which should keep the ratio of total pension disbursements to the aggregate wage bill close to 20% in the decades ahead. The demographics of Sweden have changed significantly as a result of immigration since World War II Taken together, both fiscal consolidation and pension reform have brought public finances back on a sustainable footing. Gross public debt, which jumped from 43% of GDP in 1990 to 78% in 1994, stabilised around the middle of the 1990s and started to come down again more significantly beginning in 1999. In 2000 it fell below the key level of 60% and had declined to a level of 37% of GDP as of 2007[10], and is expected to come down to a level below 20% of GDP in 2010.
Current economic development reflects a quite remarkable improvement of the Swedish economy since the crisis in 1991-93, so that Sweden could easily qualify for membership in the third phase of the Economic and Monetary Union of the European Union, adopting the euro as its currency. In economics a Monetary union is a situation where several countries have agreed to share a single currency amongst themselves Please update other articles as well to avoid contradiction within Wikipedia e In theory, by the rules of the EMU, Sweden is obliged to join, since the country has not obtained exception by any protocol or treaty (as opposed to Denmark and the United Kingdom). The Kingdom of Denmark ( ˈd̥ænmɑɡ̊ (archaic ˈd̥anmɑːɡ̊ commonly known as Denmark, is a country in the Scandinavian region of northern Europe The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom, the UK or Britain,is a Sovereign state located Nevertheless, the Swedish government decided in 1997 against joining the common currency from its start on January 1, 1999.
In the first years of the twenty-first century, a majority for joining emerged in the governing Social Democratic party, although the question was subject of heated debate, with leading personalities in the party on both sides. On September 14, 2003, a national referendum was held on the euro. Events 81 - Domitian becomes Emperor of the Roman Empire upon the death of his brother Titus. Year 2003 ( MMIII) was a Common year starting on Wednesday of the Gregorian calendar. A 56% majority of Swedes rejected the common currency, while 42% voted in favour of it. Currently no plans for a new referendum or parliamentary vote on the matter are being discussed, though it has been implied that another referendum may take place in around ten years. [11]
In contrast with most other European countries, Sweden maintained an unemployment rate around 2% or 3% of the work force throughout the 1980s. This was, however, accompanied by high and accelerating inflation. In economics inflation or price inflation is a rise in the general level of prices of goods and services over a period of time It became evident that such low unemployment rates were not sustainable, and in the severe crisis of the early 1990s the rate increased to more than 8%. In 1996 the government set out a goal of reducing unemployment to 4% by 2000. During 2000 employment rose by 90,000 people, the greatest increase in 40 years, and the goal was reached in the autumn of 2000. The same autumn the government set out its new target--that 80% of the working age population will have a regular job by 2004. Some have expressed concern that meeting the employment target may come at a cost of too high a rate of wage increases hence increasing inflation. However, as of August 2006, roughly 5% of working age Swedes were unemployed, over the government-established goal. However, some of the people who cannot find work are put away in so-called labor market political activities (or AMS-åtgärder) - activities whose only purpose is to reduce the headline unemployment number. [12]
According to Jan Edling, a former trade-unionist, the actual number of unemployed is far higher, and those figures are being suppressed by both the government and the Swedish Trade Union Confederation. Template talkInfobox Union for usage -->The Swedish Trade Union Confederation (Landsorganisationen i Sverige literally "National In Edling's report he added that a further 3% of Swedes were occupied in state-organised job schemes, not in the private sector. He also claimed a further 700,000 Swedes are either on long-term sick leave or in early retirement. Edling asks how many of these people are in fact unemployed. According to his report, the "actual unemployment" rate hovers near 20%,. [13] Critics say that the concept of "actual" unemployment, also termed "broad unemployment" by the Moderate Party, is absurd as it points out e. This article refers to the Swedish political party for the group that dominated the Church of Scotland in the 18th century see Moderate Party (Scotland g. sick people, people with cancer, students who rather want a job, people with part-time jobs, conscripts in the army, and house wives as "unemployed".
Around eighty percent of the Swedish labour force is unionised. [14] For most unions there is a counterpart employer's organization for businesses. A trade union or labour union is an organization of workers who have banded together to achieve common goals in key areas such as wages hours and working conditions forming A business (also called firm or an enterprise) is a legally recognized organizational entity designed to provide goods and/or services to The unions and employer organisations are independent of both the government and political parties, although the largest confederation of unions, the National Swedish Confederation of Trade Unions or LO (organising blue-collar workers), maintains close links to the largest political party, the Social Democrats. Template talkInfobox Union for usage -->The Swedish Trade Union Confederation (Landsorganisationen i Sverige literally "National The Swedish Social Democratic Party, (Sveriges socialdemokratiska arbetareparti 'Social Democratic Workers' Party of Sweden' contests elections as 'Workers' Party - Social Democrats' So close that after the election in 2006 and the resignation of the party leader Göran Persson, one of the strongest candidates for new party leader (and their candidate as Prime Minister) was the LO chairman Wanja Lundby-Wedin. See Jöran Persson for the 16th century Swedish government official Wanja Elisabeth Lundby-Wedin (born 19 October 1952 in Enskede, Södermanland, Sweden) has been the President of the Swedish
The unionisation rate among white-collar workers is exceptionally high in Sweden - almost as high as for blue-collar workers. White-collar worker refers to a salaried professional or an educated Worker who performs semi-professional office administrative and sales coordination tasks as opposed to There are two major confederations that organise professionals and other qualified employees: the Swedish Confederation of Professional Employees (Tjänstemännens Centralorganisation or TCO) and the Swedish Confederation of Professional Associations (Sveriges Akademikers Centralorganisation or SACO). Template talkInfobox Union for usage -->The Swedish Confederation of Professional Employees ( Tjänstemännens Centralorganisation Template talkInfobox Union for usage -->The Swedish Confederation of Professional Associations ( Sveriges Akademikers They are both independent from Sweden's political parties and never endorse candidates for office in political elections.
There is no minimum wage that is required by legislation. A minimum wage is the lowest hourly daily or monthly Wage that employers may legally pay to employees or workers Instead, minimum wage standards in different sectors are normally set by collective bargaining. Most labour contracts were re-negotiated during 2004, and call for wage increases of around seven percent over a three-year period.
The traditionally low-wage differential has increased in recent years as a result of increased flexibility as the role of wage setting at the company level has strengthened somewhat. Still, Swedish unskilled employees are relatively well-paid while well-educated Swedish employees are low-paid compared to those in competitor countries. The average increases in real wages in recent years have been high by historical standards, in large part due to unforeseen price stability. Even so, nominal wages in recent years have been slightly above those in competitor countries. Thus, while private-sector wages rose by an average annual rate of 3. 75% from 1998 to 2000 in Sweden, the comparable increase for the EU area was 1. 75%. In the year 2000 the total labour force was approximately 4. 4 million people.
The Swedish government has announced that it will privatise a number of wholly and partly state owned companies. The government of Sweden is a Constitutional monarchy based on Parliamentary democracy. "The income from these sales will be used to pay off the government debt and reduce the burden of debt for future generations. The Government's ambition is to sell companies to a value of SEK 200 billion during 2007-2010. " [15].
[17].
The gross regional product differs from a top of 363 000 SEK in the capital Stockholm County where much of the economic activity is centered to 212 000 SEK Gotland County with an average or 263 000 SEK for the whole country. A Metropolitan area 's gross regional product, ie GMP or GRP is one of several measures of the size of its economy Stockholm County ( Stockholms län) is a county or Län on the Baltic sea coast of Sweden. Gotland County ( Gotlands län) is a county or Län of Sweden. Much of the industry and services sector is located in the southern part of Sweden, while the north has many natural resources such as timber and hydropower. The extra regional figure referes to parts of the economic territory which cannot be attached directly to a single region, e. g. embassies and consulates. [22]
| Rank | County | Total¹ | Per Capita² | Share |
|---|---|---|---|---|
| 1 | Stockholm County | 669 900 | 363 000 | 28. The Counties of Sweden, or Län, are the first level administrative and political Subdivisions of Sweden. Stockholm County ( Stockholms län) is a county or Län on the Baltic sea coast of Sweden. 54% |
| 2 | Västra Götaland County | 386 538 | 257 000 | 16. Västra Götaland County or Western Gothland County ( Västra Götalands län) is a county or Län on the western coast of Sweden 47% |
| 3 | Skåne County | 278 254 | 244 000 | 11. Skåne County ( Skåne län) is the southernmost county or Län, of Sweden, basically corresponding to the historical province 85% |
| 4 | Östergötland County | 97 387 | 236 000 | 4. Östergötland County ( Östergötlands län) is a county or Län on the south east of Sweden. 15% |
| 5 | Jönköping County | 79 761 | 243 000 | 3. Jönköping County ( Jönköpings län) is a county or Län in southern Sweden. 40% |
| 6 | Uppsala County | 69 631 | 234 000 | 2. Uppsala County ( Uppsala län) is a county or Län on the eastern coast of Sweden. 97% |
| 7 | Dalarna County | 62 604 | 226 000 | 2. Dalarna County ( Dalarnas län) is a county or Län in middle Sweden. 67% |
| 8 | Västernorrland County | 61 540 | 251 000 | 2. Västernorrland County ( Västernorrlands län) is a county or Län in the north of Sweden. 62% |
| 9 | Halland County | 61 339 | 221 000 | 2. Halland County ( Hallands län) is a county ( Län) on the western coast of Sweden. 61% |
| 10 | Örebro County | 61 203 | 224 000 | 2. Örebro County (Örebro län is a county or Län in central Sweden. 61% |
| 11 | Gävleborg County | 60 417 | 218 000 | 2. Gävleborg County ( Gävleborgs län) is a county or Län on the Baltic Sea coast of Sweden. 57% |
| 12 | Västmanland County | 60 287 | 233 000 | 2. Västmanland County ( Västmanlands län) is a county or Län in central Sweden. 57% |
| 13 | Norrbotten County | 59 875 | 236 000 | 2. Norrbotten County ( Norrbottens län) is a Swedish county or Län in the extreme north of Sweden. 55% |
| 14 | Värmland County | 59 497 | 217 000 | 2. Värmland County ( Värmlands län) is a county or Län in west central Sweden. 53% |
| 15 | Västerbotten County | 55 534 | 218 000 | 2. Västerbotten County ( Västerbottens län) is a county or Län in the north of Sweden. 37% |
| 16 | Kalmar County | 53 381 | 227 000 | 2. Kalmar County ( Kalmar län) is a county or Län in southern Sweden. 27% |
| 17 | Södermanland County | 52 235 | 202 000 | 2. Södermanland County ( Södermanlands län) is a county or Län on the south east coast of Sweden. 23% |
| 18 | Kronoberg County | 43 256 | 245 000 | 1. Kronoberg County ( Kronobergs län) is a County or Län in southern Sweden. 84% |
| 19 | Blekinge County | 34 566 | 231 000 | 1. Blekinge County ( Blekinge län) is a county or Län in the south of Sweden. 47% |
| 20 | Jämtland County | 27 628 | 215 000 | 1. Jämtland County ( Jämtlands län) is a county or Län in the middle of Sweden. 18% |
| 21 | Gotland County | 12 154 | 212 000 | 0. Gotland County ( Gotlands län) is a county or Län of Sweden. 52% |
| Extra regional | 413 | 0. 02% | ||
| Total | 2 347 400 | 263 | 100. 00% | |
| 1/ Million SEK 2/ SEK Source: Statistics Sweden (2004) |
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