Sweden: Dynamic

The Swedish economy is growing dynamically, driven in particular by domestic demand. With growth projected to be 4.3% this year and 3.6% next, the output gap will be pushed further into positive territory. Although labour shortages are visible in construction, wage growth is not yet picking up. Underlying inflation remains at very low levels but is expected to rise over the projection period.
Fiscal policy adds some stimulus to an already vibrant economy next year, but monetary policy is becoming less expansionary. To counter the risk of overheating, the central bank should increase policy rates to at least neutral levels and fiscal policy should avoid fuelling the economy.
Population (000s), 2005 9 030
Area (000 sq km) 450
Currency Krona
GDP (Billion USD), 2005 295.1
Life expectancy at birth (Women, Men), 2004 82.7, 78.4
Total labour force (000s), 2005 4 622
Government type Constitutional Monarchy
Indicators % change unless otherwise indicated
2006 2007 2008
GDP growth 4.3 3.6 2.9
Household savings ratio 7.8 7.1 7.0
Consumer price index 1.4 2.2 2.5
Unemployment rate (%) 5.5 5.3 4.3
General government financial balance
(% GDP)
2.9 2.4 2.6
Current account balance   (% GDP) 7.1 7.5 7.6
Source: OECD©OECD Observer No. 258/259, December 2006

Economic data

GDP growth: -9.8% Q2/Q1 2020 2020
Consumer price inflation: 1.3% Sep 2020 annual
Trade (G20): -17.7% exp, -16.7% imp, Q2/Q1 2020
Unemployment: 7.3% Sep 2020
Last update: 10 Nov 2020

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