Economy of Sweden

Economy of Sweden

Sweden has a highly developed export-oriented economy, aided by timber, hydropower, and iron ore. These constitute the resource base of an economy oriented toward foreign trade. The main industries include motor vehicles, telecommunications, pharmaceuticals, industrial machines, precision equipment, chemical goods, home goods and appliances, forestry, iron, and steel. Traditionally, Sweden relied on a modern agricultural economy that employed over half the domestic workforce. Today, industries such as engineering, mining, steel, and pulp have been further developed, and have given rise to multi-national companies such as Ericsson, ASEA/ABB, SKF, Alfa Laval, AGA, and Dyno Nobel. Sweden is a competitive open mixed economy. There is a strong welfare state, with public-sector spending accounting up to three-fifths of GDP. In 2014, the percent of national wealth owned by the government was 24%. Due to Sweden being one of the neutral powers during World War II, it did not have to rebuild its economic base, the banking system, and country as a whole, as did many other European countries. Sweden has achieved a high standard of living under a mixed system of high-tech capitalism and extensive welfare benefits. Sweden has the second highest total tax revenue as a share of GDP, behind only Denmark. As of 2012, the total tax revenue was 44.2% of GDP, down from 48.3% in 2006. In 2014 the National Institute of Economic research predicted GDP growth of 1.8%, 3.1% and 3.4% in 2014, 2015 and 2016 respectively. A comparison of upcoming economic growth rates of European Union countries revealed that the Baltic states, Poland, and Slovakia are the only countries that are expected to keep comparable or higher growth rates.

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British steam railcars.

Friedrich Hayek.

Economy of Sweden

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