Economic trends
The international financial crisis plunged Sweden into severe recession in 2009 (-5.1%), as the country depends heavily on international trade. Swedish economy recovered in 2010-2011 (GDP growth of over 4%), driven by household consumption and a resumption of international trade, however, the eurozone crisis will inhibit growth in 2012 and the latter is estimated at only 1.3 %.
Unlike its European neighbors, Sweden has sound public finances and has resisted the eurozone crisis rather well. However, concerns remain about the possible burst of its housing bubble. fueled by strong growth in loans in recent years. The State Budget for 2012 gives priority to measures countering the economic slowdown and promoting sustained growth and employment, ensuring a fair distribution of social welfare and increasing financial stability. Fiscal measures are also planned to improve the business climate.
Sweden has one of the highest standards of living in the world. However, unemployment is becoming a real problem (7.5%).
Main branches 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 slightly over a quarter of the GDP. It is dominated 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 employs more than three quarters of the active workforce, it contributes more than 70% of the GDP, and is maintained by telecommunications and IT equipment
International trade
Sweden is very open to foreign trade, which represents more than 90% of the GDP.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, while 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, despite the uncertain climate of international trade.
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Last updates: May 2012
