Swedish economy

Favoured by peace and political neutrality throughout the twentieth century, the Swedish population has reached an enviable standard of living based on the twin pillars of high technology and a strong welfare state.

The country has excellent transport infrastructure and communication and a highly skilled workforce. Timber, hydropower, and iron are the core of an economy oriented toward foreign trade. Sweden is also the first country to use more renewable energy than fossil fuels, with a large biomass (wood, mostly).

The proportion of the population employed in the secondary sector (industry) in 1960 was 43. 9% and 29. 1% in 1987 according to ILO figures. Following a crisis in the Swedish model during the 1990s, fiscal restraint adopted by the government led to a substantial surplus in 2001. The latter was halved in 2002 because of global economic slowdown. The Swedish central bank (the Riksbank) sets the objective of price stability with an inflation target of 2%.

In 2003, the adoption of the euro was rejected in a referendum in which opponents of the euro gained a victory convaincante8. The majority of political parties was officially in favor of adoption.

The growth rate for 2004 amounted to 3. 5%, confirming a robust economic health relative to the average of European Union countries.