World War II, 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. In 1993, agriculture
accounted 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, growing unemployment, and a
gradual loss of competitiveness in international markets. In
November 1992, Sweden broke its tie to the EC's ECU (European
Currency Unit), and depreciation of the krona has boosted export
competitiveness and helped lift Sweden out of its 1991-93 recession.
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.

GDP: purchasing power parity - $177.3 billion (1995 est.)

GDP real growth rate: 3.5% (1995 est.)

GDP per capita: $20,100 (1995 est.)

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

Inflation rate (consumer prices): 2.6% (1995)

Labor force: 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: 7.8% (December 1995) plus about 6% in training
programs

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: 11.7% (1994)

Electricity:
capacity: 34,560,000 kW
production: 141 billion kWh
consumption per capita: 14,891 kWh (1993)