Ekonomifakta

Sweden - Quick Facts

Sweden is the largest country in Scandinavia. It borders Norway to the west and Finland to the northeast. In terms of land area, Sweden is the 55th largest country in the world and the third largest in Europe. Despite its size, Sweden has a relatively small population of about 10 million people.

Sweden is a parliamentary democracy under a constitutional monarchy. The current monarch is His Majesty King Carl XVI Gustaf. Legislative power is held by the Swedish parliament, the Riksdag, which consists of a single chamber with 349 members elected in general elections held every four years.

Executive power is exercised by the Government (Regeringen), which is responsible for governing the country and proposing new laws or amendments to existing legislation.

An export-oriented market economy

The Government’s economic policy focuses on maintaining stable public finances. At the same time, Sweden’s central bank, the Riksbank, aims to ensure low Inflation:inflation and a high level of price stability.

Sweden has an Export:export-oriented market economy, with exports of goods and services accounting for nearly half of the country’s GDP:GDP. Historically, Swedish industry and the business sector have been largely based on natural resources. While products such as paper, iron and steel remain important, Sweden’s main competitive advantage today lies in knowledge, Innovation:innovation, and the flexible use of both tangible and intangible resources.

Public sector and taxes

Sweden has a large public sector with extensive healthcare, education and childcare systems. Income taxes and mandatory social security contributions remain relatively high by international standards, although they have declined somewhat over the past decade.

The highest marginal tax rate, including employer social security contributions, remains comparatively high at around 60 percent. This rate also applies at a relatively low income level compared with many other countries.

Globalisation

The Swedish economy has undergone significant structural changes over the past 25 years. Some of the most important developments include new organizational structures within the business sector, increased foreign ownership, and a decline in the domestic production of goods.


In particular, the production of less complex and more labour-intensive goods has increasingly been relocated to low-wage countries. The growing share of foreign ownership in Swedish companies has also increased Sweden’s economic integration with – and dependence on – the global economy.


Another important development is the widespread adoption of information technology across society. This has strengthened the importance of knowledge and human capital as key factors for the competitiveness of Swedish businesses.

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