Gross Domestic Product (GDP) is the market value of all goods and services produced in a country during one year. In the early 1990s, the Swedish GDP decreased, which caused Sweden to fall in GDP rankings. Since then, however, the growth rate of the Swedish economy has been relatively good compared to that of other countries, once again narrowing the gap in GDP between Sweden and other comparable countries.
GDP is the market value of all goods and services produced in a country during one year. Although GDP is not a perfect measure, it reflects the size of an economy. The most common way of describing economic growth is to state the increase of GDP over time.
In the 1970s and the 1980s, the growth rate of the Swedish GDP was lower than both the average growth rate of the EU and the average growth of the OECD area. The recession in Sweden in the beginning of the 1990s caused a low-water mark for economic growth in Sweden as the GDP actually fell by about 4 per cent in terms of volume for three years between 1990 and 1993. After 1993, the growth rate of the Swedish GDP once again accelerated and reached a level comparable to that of the United States and actually exceeding that of the OECD.
After years of economic growth, the Swedish economy together with the economies of the rest of the developed world was again affected by a sharp economic downturn caused by of the burst of the dot-com bubble early in the year 2000. However, the crisis was followed by an economic boom. World trade increased sharply, which resulted in rapid export growth for Sweden. The growth rate of the Swedish GDP reached 4 per cent in both 2004 and 2006. In 2007, economic growth slowed down again and the financial crisis in late 2008 resulted in a deep recession and falling GDP in 2009. Since then, Sweden has again seen a period of recovery.