Overview: Aided by a long period of peace and neutrality during World War I through World War II, 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 that is 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. In the last few years, however, this extraordinarily favorable picture has been clouded by inflation, growing unemployment, and a gradual loss of competitiveness in international markets. Although Prime Minister BILDT's center-right minority coalition had hoped to charge ahead with free-market-oriented reforms, a skyrocketing budget deficit - almost 14% of GDP in FY94 projections - and record unemployment have forestalled many of the plans. Unemployment in 1993 is estimated at around 8% with another 5% in job training. Continued heavy foreign exchange speculation forced the government to cooperate in late 1992 with the opposition Social Democrats on two crisis packages - one a severe austerity pact and the other a program to spur industrial competitiveness - which basically set economic policy through 1997. In November 1992, Sweden broke its tie to the EC's ECU, and the krona has since depreciated about 25% against the dollar. The government hopes the boost in export competitiveness from the depreciation will help lift Sweden out of its 3-year recession. To curb the budget deficit and bolster confidence in the economy, BILDT continues to propose cuts in welfare benefits, subsidies, defense, and foreign aid. Sweden continues to harmonize its economic policies with those of the EU in preparation for scheduled membership by early 1995, which will help to broaden European economic unity.

National product: GDP - purchasing power equivalent - $153.7 billion (1993)

National product real growth rate: -2.7% (1993)

National product per capita: $17,600 (1993)

Inflation rate (consumer prices): 4.4% (1993 est.)

Unemployment rate: 8.2% (1993 est.)

Budget:
revenues: $45.1 billion
expenditures: $73.1 billion, including capital expenditures of $NA (FY94)

Exports: $49.7 billion (f.o.b., 1993 est.)
commodities: machinery, motor vehicles, paper products, pulp and wood, iron and steel products, chemicals, petroleum and petroleum products
partners: EC 55.8% (Germany 15%, UK 9.7%, Denmark 7.2%, France 5.8%), EFTA 17.4% (Norway 8.4%, Finland 5.1%), US 8.2%, Central and Eastern Europe 2.5% (1992)

Imports: $42.3 billion (c.i.f., 1993 est.)
commodities: machinery, petroleum and petroleum products, chemicals, motor vehicles, foodstuffs, iron and steel, clothing
partners: EC 53.6% (Germany 17.9%, UK 6.3%, Denmark 7.5%, France 4.9%), EFTA (Norway 6.6%, Finland 6%), US 8.4%, Central and Eastern Europe 3% (1992)

External debt: $19.5 billion (1992 est.)

Industrial production: growth rate 0.8% (1993 est.)

Electricity:
capacity: 39,716,000 kW
production: 142.5 billion kWh
consumption per capita: 16,560 kWh (1992)

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

Agriculture: animal husbandry predominates, with milk and dairy products accounting for 37% of farm income; main crops - grains, sugar beets, potatoes; 100% self-sufficient in grains and potatoes; Sweden is about 50% self-sufficient in most products; farming accounted for 1.2% of GDP and 1.9% of jobs in 1990

Illicit drugs: transshipment point for narcotics shipped via the CIS and Baltic states for the European market

Economic aid:
donor: ODA and OOF commitments (1970-89), $10.3 billion

Currency: 1 Swedish krona (SKr) = 100 oere
Exchange rates: Swedish kronor (SKr) per US$1 - 8.1255 (January 1994), 7.834 (1993), 5.8238 (1992), 6.0475 (1991) 5.9188 (1990), 6.4469 (1989)

Fiscal year: 1 July - 30 June

NOTE: The information regarding Sweden on this page is re-published from the 1995 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Sweden Economy 1995 information contained here. All suggestions for corrections of any errors about Sweden Economy 1995 should be addressed to the CIA.