Economy—overview: Aided by peace and neutrality for the whole twentieth century 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 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. Agriculture accounts for only 2% of GDP and 2% of the jobs. In recent years however this extraordinarily favorable picture has been clouded by budgetary difficulties inflation high unemployment and a gradual loss of competitiveness in international markets. To curb the budget deficit and bolster confidence in the economy the government adopted an adjustment program in November 1994 that aims to eliminate the government budget deficit and to stabilize the debt to GDP ratio. Sweden has harmonized its economic policies with those of the EU which it joined at the start of 1995. Sweden has decided not to join the EMU (European Monetary Union). Annual GDP growth should edge up to 2.5% in 1998-99.

GDP: purchasing power parity—$176.2 billion (1997 est.)

GDP—real growth rate: 2.1% (1997 est.)

GDP—per capita: purchasing power parity—$19 700 (1997 est.)

GDP—composition by sector:
agriculture: 2%
industry: 27%
services: 71% (1993)

Inflation rate—consumer price index: 2% (1997 est.)

Labor force:
total: 4.552 million (84% unionized 1992)
by occupation: community social and personal services 38.3% mining and manufacturing 21.2% commerce hotels and restaurants 14.1% banking insurance 9.0% communications 7.2% construction 7.0% agriculture fishing and forestry 3.2% (1991)

Unemployment rate: 6.6% plus about 5% in training programs (1997 est.)

Budget:
revenues: $109.4 billion
expenditures: $146.1 billion including capital expenditures of $NA (FY95/96)

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

Industrial production growth rate: 2.6% (1996)

Electricity—capacity: 35.462 million kW (1995)

Electricity—production: 142.913 billion kWh (1995)

Electricity—consumption per capita: 15 996 kWh (1995)

Agriculture—products: grains sugar beets potatoes; meat milk

Exports:
total value: $84.5 billion (f.o.b. 1996)
commodities: machinery motor vehicles paper products pulp and wood iron and steel products chemicals petroleum and petroleum products
partners: EU 59.1% (Germany 13.2% UK 10.2% Denmark 6.9% France 5.1%) Norway 8.1% Finland 4.8% US 8.0% (1994)

Imports:
total value: $66.6 billion (c.i.f. 1996)
commodities: machinery petroleum and petroleum products chemicals motor vehicles foodstuffs iron and steel clothing
partners: EU 62.6% (Germany 18.4% UK 9.5% Denmark 6.6% France 5.5%) Finland 6.3% Norway 6.1% US 8.5% (1994)

Debt—external: $66.5 billion (1994)

Economic aid:
donor: ODA $1.769 billion (1993)

Currency: 1 Swedish krona (SKr) = 100 oere

Exchange rates: Swedish kronor (SKr) per US$1—8.0085 (January 1998) 7.6349 (1997) 6.7060 (1996) 7.1333 (1995) 7.7160 (1994) 7.7834 (1993)

Fiscal year: 1 January—31 December (Sweden changed its fiscal year from 1 July - 30 June in 1995)