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Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of general economic information | Political outline

Economic indicators

Sweden has one of the highest standards of living in the world. The country, which depends heavily on international trade, has a very developed industrial sector. After a rise in 2007, the growth of the Swedish economy collapsed in 2008, mainly because of slower growth in exports due to the deterioration of the international economic environment. In 2009, domestic demand continued to fall end the country entered into recession.
The Swedish economy is currently undergoing a more pronounced shrinkage than during the national banking crisis at the beginning of the 90s. Production dropped sharply in 2009, while unemployment has today become the Swedish curse, with one of the highest rates in Europe.
The GDP drop will entail a considerable production gap, so that the underlaying inflation will diminish even as growth picks up again. The monetary policy was eased but no new measures can be expected to reduce the market rates. The automatic and discretionary budgetary reactions will maintain demand and additional measures could contibute in keeping the raise of unemployment in check.

Main indicators	2006	2007	2008	2009	2010
GDP (billions USD)	393.76	453.84	484.55	359.11e	361.39e
GDP (constant prices, annual % change)	4.2	2.6	-0.2	-4.3	0.2
GDP per capita (USD)	43,274	49,661	52,790e	38,960	39,041e
General government balance (in % of GDP)	2.4	3.8e	2.5	-3.0	-3.8e
Inflation rate (%)	1.5	1.7	3.3e	-0.2	0.0
Unemployment rate (% of the labor force)	7.0	6.1	6.2	8.4	9.6
Current Account (billions USD)	33.80	39.10	40.43	24.84	26.87
Current Account (in % of GDP)	8.6	8.6	8.3	6.9	7.4e

Source: IMF - World Economic Outlook Database

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 nearly a third of the GDP. It is characterized 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 contributes more than two-thirds 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)	2.0	22.0	75.7
Value added (in % of GDP)	1.5	28.8	69.7
Value added (annual % change)	-1.2	3.0	3.0

- last available data.

Monetary indicators	2004	2005	2006	2007	2008
Swedish Krona (SEK) - Average annual exchange rate for 1 USD	7.35	7.47	7.38	6.76	6.59

Source: World Bank - World Development Indicators

Indicator of economic freedom

Score:: 70.4/100
Position:: mostly free
World Rank:: 26 out of 179
Regional Rank:: 14 out of 44

Distribution of Economic freedom in the world
Source: 2008 Index of Economic freedom, Heritage Foundation

Country risk

See the country risk analysis provided by Ducroire.

Foreign trade in figures

Sweden is very open to foreign trade. According to official Swedish statistics, the progression of trade in goods and services remains strong in Sweden, even though it slowed down considerably in 2008, and is likely to follow this trend in 2009. 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. 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	2003	2004	2005	2006	2007
Imports of goods (millions USD)	83,147	100,217	112,274	128,290	152,230
Exports of goods (millions USD)	102,080	123,187	131,976	148,789	170,462
Imports of services (millions USD)	28,771	33,138	35,273	39,571	47,953
Exports of services (millions USD)	30,654	39,023	42,887	49,797	63,587
Imports of goods and services (annual % change)	3.8	6.8	7.0	8.2	9.5
Exports of goods and services (annual % change)	4.0	11.0	6.6	8.9	5.6
Imports of goods and services (in % of GDP)	37.0	38.2	41.0	43.2	44.8
Exports of goods and services (in % of GDP)	43.8	46.3	48.7	51.4	52.4
Trade Balance (millions USD)	18,933	22,970	19,701	20,498	18,232
Trade Balance (including service) (millions USD)	20,816	28,855	27,316	30,724	33,865
Foreign trade (in % of GDP)	80.8	84.5	89.7	94.6	97.2

Source: World Bank

Main partner countries

Main customers (% of exports)	2008
Germany	10.4%
Norway	9.5%
Denmark	7.4%
United Kingdom	7.3%
United States	6.6%
Finland	6.3%
Netherlands	5.1%
France	4.9%
Belgium	4.4%
Italy	3.1%
Poland	2.5%
Russia	2.4%
Spain	2.3%
China	2.2%
Australia	1.1%
Japan	1.1%
Turkey	1.1%
India	1.1%
Austria	1.0%
Canada	0.9%
See more countries	58.8%

Main suppliers (% of imports)	2008
Germany	17.5%
Denmark	9.4%
Norway	8.9%
United Kingdom	6.3%
Netherlands	5.9%
Finland	5.7%
France	5.0%
Russia	4.1%
Belgium	3.9%
Italy	3.4%
China	3.4%
Poland	3.3%
United States	3.1%
Japan	1.6%
Spain	1.3%
Czech Republic	1.3%
Austria	1.1%
Ireland	1.0%
Switzerland	0.9%
South Korea	0.8%
See more countries	51.9%

Source: Comtrade

Main products

Main exports (% of exports)	2008
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	15.5%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	12.1%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	10.9%
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	7.3%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	6.5%
Iron and steelIron and steel	5.4%
Pharmaceutical productsPharmaceutical products	4.6%
Plastics and articles thereofPlastics and articles thereof	3.1%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	2.7%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	2.7%
Articles of iron or steelArticles of iron or steel	2.2%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	1.9%
Pulp of wood or of other fibrous cellulosic...Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard	1.5%
Ores, slag and ashOres, slag and ash	1.4%
Aluminium and articles thereofAluminium and articles thereof	1.0%
Copper and articles thereofCopper and articles thereof	1.0%
Organic chemicalsOrganic chemicals	1.0%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	0.9%
Miscellaneous chemical productsMiscellaneous chemical products	0.8%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.7%
Beverages, spirits and vinegarBeverages, spirits and vinegar	0.6%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.6%
Rubber and articles thereofRubber and articles thereof	0.6%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	0.5%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	0.4%
Glass and glasswareGlass and glassware	0.3%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.3%
Ships, boats and floating structuresShips, boats and floating structures	0.3%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.3%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	0.3%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.3%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.3%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.3%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	0.3%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.3%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.3%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.3%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.2%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.2%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.2%
CerealsCereals	0.2%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.2%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.2%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.2%
Impregnated, coated, covered or laminated textile...Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use	0.1%
Railway or tramway locomotives, rolling-stock and...Railway or tramway locomotives, rolling-stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signalling equipment of all kinds	0.1%
Ceramic productsCeramic products	0.1%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.1%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.1%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	0.1%
Wadding, felt and nonwovens; special yarns; twine,...Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof	0.1%
Meat and edible meat offalMeat and edible meat offal	0.1%
Sugars and sugar confectionerySugars and sugar confectionery	0.1%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.1%
See more products	47.6%

Main imports (% of imports)	2008
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	14.5%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	13.8%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	11.0%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	9.5%
Iron and steelIron and steel	4.2%
Plastics and articles thereofPlastics and articles thereof	3.4%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	2.7%
Pharmaceutical productsPharmaceutical products	2.4%
Articles of iron or steelArticles of iron or steel	2.2%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	1.9%
Organic chemicalsOrganic chemicals	1.9%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	1.4%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	1.3%
Rubber and articles thereofRubber and articles thereof	1.3%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	1.2%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	1.2%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	1.1%
Aluminium and articles thereofAluminium and articles thereof	1.1%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	1.0%
Beverages, spirits and vinegarBeverages, spirits and vinegar	0.9%
Copper and articles thereofCopper and articles thereof	0.9%
Miscellaneous chemical productsMiscellaneous chemical products	0.9%
Meat and edible meat offalMeat and edible meat offal	0.7%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.6%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.6%
Ores, slag and ashOres, slag and ash	0.6%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.6%
Ships, boats and floating structuresShips, boats and floating structures	0.5%
Glass and glasswareGlass and glassware	0.5%
Nickel and articles thereofNickel and articles thereof	0.5%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.5%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.5%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.5%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.5%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.5%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.5%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.5%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.4%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	0.4%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.4%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.4%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.4%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.4%
FertilizersFertilizers	0.4%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.3%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.3%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.3%
Coffee, tea, maté and spicesCoffee, tea, maté and spices	0.3%
Pulp of wood or of other fibrous cellulosic...Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard	0.3%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.3%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	0.3%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	0.3%
Ceramic productsCeramic products	0.3%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.3%
Railway or tramway locomotives, rolling-stock and...Railway or tramway locomotives, rolling-stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signalling equipment of all kinds	0.2%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.2%
Live trees and other plants; bulbs, roots and the...Live trees and other plants; bulbs, roots and the like; cut flowers and ornamental foliage	0.2%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	0.2%
Sugars and sugar confectionerySugars and sugar confectionery	0.2%
Other base metals; cermets; articles thereofOther base metals; cermets; articles thereof	0.2%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.1%
Wadding, felt and nonwovens; special yarns; twine,...Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof	0.1%
Photographic or cinematographic goodsPhotographic or cinematographic goods	0.1%
Carpets and other textile floor coveringsCarpets and other textile floor coverings	0.1%
Impregnated, coated, covered or laminated textile...Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use	0.1%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	0.1%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	0.1%
See more products	47.0%

Source: Comtrade

See more products: More imports (Intracen Data)
More exports (Intracen Data)

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

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 2010

Indicator of freedom of the press

World Rank:: 11/173
Evolution:: 4 places down compared to 2007

Source: Worldwide Press Freedom Index 2007, Reporters Without Borders

Indicator of political freedom

Ranking:: Free
Political freedom:: 1/7
Civil liberties:: 1/7

Map of freedom 2007
Source: Freedom House

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