Companies of global importance, including Ericsson, Saab, Volvo, Electrolux and SKF, the world's biggest roller-bearing manufacturer. Highly developed and constantly updated infrastructure. Sophisticated technology. Skilled labor force is virtually bilingual in English.
Weaknesses
Uncompetitive labor costs, although this is beginning to change slowly. Highest taxation in the OECD, accounting for over 60% of GDP. Peripheral location, raising costs for producers and exporters.
Profile
The state plays a significant role in the economy, but tends to restrict its role to services and infrastructure. Sweden's industrial giants have mostly been private-sector companies.
The early 1990s witnessed a shift in government economic policy. Some elements of the post-war consensus on the social role of government were abandoned in favor of measures designed to help business. However, the hoped-for result of greater growth was not achieved, and unemployment and the overall cost of welfare rose. Sweden's balance of payments deficit is now the highest in the OECD. The deficit will have to be financed by improved business performance and higher taxation.
