This 2004 Article IV Consultation highlights that the downturn experienced by the Swedish economy in 2002–03 was relatively mild, with growth remaining well above the European Union average. Expansionary fiscal policy in 2002 underpinned private consumption. Private investment, however,...

The Swedish economy recovered from the crisis, assisted by a sizable fiscal stimulus. Executive Directors commended the fiscal and monetary frameworks, skillful and proactive management of monetary policy of the Riksbank, the soundness of the financial system, and stressed the need to accelerate...

Sweden’s quality of life, public health, and educational attainment indicators are among the best in the world. Although it is impossible to pin down the optimal size of the welfare state precisely, the government has generally agreed to have become too big by the late 1980s. Globalization is...

This 2009 Article IV Consultation highlights that Sweden has been hit hard by the global financial crisis. Two of its banks built up large exposures in the Baltics that significantly increased loan losses beyond normal recessionary levels. In response to the crisis, the authorities have taken...

Sweden’s 2005 Article IV Consultation reports that strong productivity gains, wage moderation, and falling nonenergy import prices contributed to reducing inflation, and creating room for aggressive monetary easing. Export growth has been led by a strong recovery in the telecommunications and...

This 1999 Article IV Consultation highlights that Sweden’s real GDP growth accelerated to 2.9 percent in 1998, as a result of a strengthening of domestic demand. Private consumption was aided by sizable real wage increases, declining unemployment, increased government transfers to households,...

Sweden’s recovery from the global crisis was swift reflecting its strong position at the onset of the crisis. The 2012 Article IV Consultation reports that the economic outlook remains clouded. Executive Directors have commended Sweden’s sustained strong macroeconomic performance, which has...

This 2008 Article IV Consultation highlights that Sweden’s economy has performed well, but is sensitive to global demand. The activity is now moderating. Exports have benefited from sound competitiveness, but euro area and U.S. slowing is causing them to decelerate. Private consumption growth...

This 2002 Article IV Consultation highlights that a cyclical slowdown in domestic demand coupled with global economic weakness led to slower growth of Sweden in 2001. Private consumption stagnated despite rising disposable income, owing to adverse confidence and wealth effects from the continued...

In Sweden, the authorities have indicated that their medium-term fiscal strategy is based on restraining expenditures through nominal ceilings and maintaining a fiscal surplus target of 2 percent of gross domestic product (GDP), measured as an average over the cycle. The mission has praised the...