Overview: Aided by a long period of peace and neutrality during World War I through World War II, Sweden has achieved a high standard of living under a welfare state system. It has virtually full employment with less than 2% of the work force unemployed in 1987. Sweden is highly industrialized, has a modern distribution system, excellent internal and external communications, and a skilled and intelligent 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 1987 real GDP grew by 3.1% and the budget deficit declined. On the negative side, inflation increased and higher wage costs eroded the country's competitiveness in foreign markets.

GNP: $116.5 billion, per capita $13,897; real growth rate 3.1% (1987)

Inflation rate (consumer prices): 6.9% (June 1988)

Unemployment rate: 1.9% (1987)

Budget: revenues $53.4 billion; expenditures $58.5 billion, including capital expenditures of $10.4 (FY88)

Exports: $44.5 billion (f.o.b., 1987); @m5commodities--machinery, motor vehicles, paper products, pulp and wood, iron and steel products, chemicals, petroleum and petroleum products; @m5partners--EC 50.0%, (FRG 11.5%, UK 10.4%, Denmark 8.0%), US 11.2%, Norway 11.2%, less developed countries 9.3%

Imports: $40.7 billion (c.i.f., 1987); @m5commodities--machinery, petroleum and petroleum products, chemicals, motor vehicles, foodstuffs, iron and steel, clothing; @m5partners--EC 57.2% (FRG 20.5%, UK 10.4%, Denmark 6.8%), US 7.8%, less developed countries 7.3%, Norway 5.6%

External debt: $62.5 billion (December 1986)

Industrial production: growth rate 4.5% (1987)

Electricity: 39,161,000 kW capacity; 182,105 million kWh produced, 21,700 kWh per capita (1988)

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, 85% self-sufficient in sugar beets

Aid: donor--ODA and OOF commitments (1970-86), $7.8 billion

Currency: Swedish krona (plural--kronor); 1 Swedish krona (SKr) = 100 ore

Exchange rates: Swedish kronor (SKr) per US$1--6.2558 (January 1989), 6.1272 (1988), 6.3404 (1987), 7.1236 (1986), 8.6039 (1985)

Fiscal year: 1 July-30 June

NOTE: The information regarding Sweden on this page is re-published from the 1989 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Sweden Economy 1989 information contained here. All suggestions for corrections of any errors about Sweden Economy 1989 should be addressed to the CIA.