Europe

Sweden
Last reviewed: 27 June 2008

Country information

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ECONOMY

GDP: US$ 352 billion, (2005 est.)
GDP per head: US$ 42,144 (2006 est.) (SEK 310,800, 2006 figure)
Annual Growth: +2.8% (March 2007) 2.5.0% (2008 est.), 2.5% (2009 est.)
Inflation: 3.4% (April 2008) (2.8% 2009 est.)
Unemployment: 0% (April 2008) (Sweden uses ILO definition as of October 2007)
Major Industries: Forestry, mining, agriculture, engineering and high tech manufacturing, telecommunications.
Major trading partners: Germany, UK, USA.

The Swedish economy continues to outpace the Eurozone. GDP growth - fuelled by strong exports and consumer spending was 2.8% in 2007 and is expected to be 2.8% in 2008. Open unemployment is now at 6.0% (April 2008; NB! New ILO definition covering the 15-74 age range), lower than many European countries, but the number does not include a large number of people in labour market programmes or on long-term sick leave. Youth unemployment is the second highest in the EU (after Italy). In Sweden taxes are higher, benefits more generous, and the labour market more highly regulated than in many EU countries. The Central Bank is independent. Timber, pulp and paper, iron ore, copper and uranium have provided the basis of Sweden's economic growth since the 1920s.

Success in manufacturing then followed, with companies such as Volvo, Saab, Electrolux and Ericsson becoming international household names. Swedish design has attracted much attention on the international scene and has been brought to the masses by companies like IKEA and clothes chain H&M. Sweden is the second largest exporter of pop music in the EU, a trend started by ABBA in the 1970s.

Sweden was a leading country during the IT boom in the late 1990s and suffered when the bubble burst. The sector has now partly recovered. PC and mobile phone ownership, IT literacy and Internet usage are all among the highest per capita in Europe.