Capital City: Stockholm
	It is %T:%M %A in Stockholm

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Economic trends

Sweden is a highly industrialized country and has one of the highest living standards in the world. The country’s economy is completely driven by exports which account for 45% of GDP. The GDP growth rate was 4.2% in 2006 and 3.6% in 2007. Weaker global demand and rising interest rates will result into slow down in its growth to around 2.8% in 2008, according to IMF. The main economic policy of the new government will be to strengthen the economic incentives to work and reduce welfare dependency. Inflation is rising gradually (1.9% in 2007 against 0.8% in 2005), while the external accounts will remain strongly in surplus. Job creation remains a major problem - the unemployment rate remains stagnant at around 5%.

Main branches of industry

Agriculture, once accounting for nearly all of Sweden's economy, now accounts for less than 2% of the GDP. The main agricultural productions are cereals, dairy products, meat and potatoes. The country is rich in forests, iron, lead, zinc, and hydroelectric power; which are efficiently managed through use of modern technology. Industry and mining together contribute around 29% to GDP. Swedish industry is characterized by large internationally well known export groups like Volvo, Saab, Erickson and Astra Zeneca. The main manufacturing activities are wood processing, electronics, food-processing and pharmaceuticals. New technologies and biotechnologies sectors have an important weight in the economy. The services sector contributes nearly 70% to the GDP.

International trade

The share of foreign trade in country’s trade is approximately 85%. A marked shift in the nature of the exports, where services (like the IT and telecommunications) have taken over from traditional industries (steel, paper, and pulp) has made the Swedish export sector less vulnerable to international fluctuations. The country is a member of the EU, but does not currently take part in the single currency. The EU is the country's top trading block constituting more than 50% of Swedish exports and more than 60% of imports. Sweden’s top three export partners are: the USA, Germany and Norway. The commodities mainly exported are machinery, electrical & electronic equipment, vehicles, paper & pulp, and iron & steel. The country’s top three import partners are: Germany, Denmark and Norway. It mainly imports machinery, electrical & electronic equipment, mineral fuels & oils, vehicles and iron & steel.