Sweden has a developed export-oriented economy heavily dependent on timber, hydropower, and iron ore. These comprise the resources base of an economy that mainly geared toward foreign trade. Sweden never had to rebuild its economy base or banking system since it did not participate in World War II making it achieve high standards of living due to its mixed system of comprehensive welfare benefits and intricate capitalism.
Overview Of The Economy Of Sweden
Sweden in 2016 had a nominal GDP of $517 billion and GDP by PPP of $498 billion. The nominal GDP is ranked 21st whereas GDP by PPP is ranked 33rd in the world. Sweden recorded a GDP growth rate of 4.1% in 2015 which is projected to grow in the year 2017. In 2016, Sweden's GDP per capita PPP was estimated at $50,000 while the nominal GDP per capita stood at $51,000. In 2012 it was estimated that the service industry contributed to 70.8% of Sweden's economy while the industry and agriculture sectors contributed 27.4% and 1.8% respectively. In 2012 Sweden experienced inflation rate of 0.9% with the country's unemployment rate of 6.2% or 7% by 2015 and was ranked 13th in regards to ease of doing business. The country's labor force was estimated at 5.1 million people as of 2013 and was distributed in the three most critical sectors of the economy, which included services 70.7%, industries 28.2%, and agriculture 1.1%. Sweden's public debt accounted for 32% of the GDP, and its foreign investments valued at $60 billion. The state's revenues were estimated at $0.27 trillion and expenses at $0.27.
Leading Industries Of Sweden
The main industries in Sweden include industrial machines, home goods, and appliances, precision equipment, forestry, motor vehicles, steel, telecommunication, iron, and pharmaceuticals. Traditionally the modern agricultural economy of Sweden employed over half of the local workforce, and now it further develops pulp, steel, engineering, mine and internationally competitive industries such as Ericsson, Dyno Nobel, Laval, Alfa, ASEA/ABB, AGA and SKF
Top Export Goods And Export Partners Of Sweden
Sweden is ranked as the 29th largest export economy in the world. The leading export goods are military armaments, paper products, iron and steel products, machinery, pulp and wood, chemicals, and motor vehicles. The main export partners are Germany taking 11%, the United Kingdom taking 7.7%, the United States taking 6.4%, Netherlands taking 5.3%, Belgium taking 5.2%, Finland taking 4.7%, and France taking 4.6% of the total exports.
Top Import Goods And Import Partners Of Sweden
Sweden is the 29th largest importing economy in the world. The country's top imports are machinery, motor vehicles, petroleum and petroleum products, clothing, chemicals, foodstuffs, and iron and steel. Sweden's main import partners are Germany accounting for 17%, Netherlands accounting for 8.1%, Denmark accounting for 7.2%, Norway accounting for 6.6%. The UK accounts for 6.0%, Finland accounts for 5.1%, China accounts for 4.8%, and Russia accounts for 4.6%, while France accounts for 4.6% of the country's total imports.
The Growth Of Sweden's Economy
Currently, an estimate of 4.5 million people in Sweden contributes to the nation’s workforce and a third have attained tertiary education. Sweden has the 9th highest GDP per hour worked at 31 USD as of 2006 with the key productivity drivers being globalization, deregulation and the growth of Sweden's technology sector. The GDP per hour keeps growing each year with an increase of 2.5%. Sweden tops index ranked leader in privatized pensions and has very few problems concerning pension funding as compared to other Western European countries. In 2012 to 2013 the World Economic Forum competitiveness index ranked Sweden as the 4th most competitive in the world.
What Kind of Economy Does Sweden Have?
Sweden has a developed export-oriented economy heavily dependent on timber, hydropower, and iron ore.
About the Author
Benjamin Elisha Sawe holds a Bachelor of Arts in Economics and Statistics and an MBA in Strategic Management. He is a frequent World Atlas contributor.
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