titute the resource base of an
economy heavily oriented toward foreign trade. Privately owned firms
account for about 90% of industrial output, of which the engineering
sector accounts for 50% of output and exports. Agriculture accounts
for only 2% of GDP and 2% of the jobs. In recent years, however,
this extraordinarily favorable picture has been clouded by budgetary
difficulties, inflation, high unemployment, and a gradual loss of
competitiveness in international markets. Sweden has harmonized its
economic policies with those of the EU, which it joined at the start
of 1995. Sweden decided not to join the euro system at its outset in
January 1999 but plans to hold a referendum in 2000 on whether to
join. Annual GDP growth is forecast for 2.2% and 2.6% in 1999 and
2000 respectively. Budgetary problems and shaky business confidence
will constrain government plans to reduce unemployment.

GDP: purchasing power parity--$175 billion (1998 est.)

GDP--real growth rate: 2.9% (1998 est.)

GDP--per capita: purchasing power parity?$19,700 (1998 est.)

GDP--composition by sector:
agriculture: 2.2%
industry: 30.5%
services: 67.3% (1997)

Population below poverty line: NA%

Household income or consumption by percentage share:
lowest 10%: 3.7%
highest 10%: 20.1% (1992)

Inflation rate (consumer prices): 2% (1998 est.)

Labor force: 4.552 million (1992)

Labor force--by occupation: community, social and personal
services 38.3%, mining and manufacturing 21.2%, commerce, hotels,
and restaurants 14.1%, banking, insurance 9%, communications 7.2%,
construction 7%, agriculture, fishing, and forestry 3.2% (1991)

Unemployment rate: 6.3% plus about 5% in training programs (1998
est.)

Budget:
revenues: $109.4 billion
expenditures: $146.1 billion, including capital expenditures of $NA
(FY95/96)

Industries: iron and steel, precision equipment (bearings, radio
and telephone parts, armaments), wood pulp and paper products,
processed foods, motor vehicles

Industrial production growth rate: 4.4% (1998)

Electricity--production: 135.192 billion kWh (1996)

Electricity--production by source:
fossil fuel: 9.75%
hydro: 37.52%
nuclear: 52.62%
other: 0.11% (1996)

Electricity--consumption: 141.392 billion kWh (1996)

Electricity--exports: 9.7 billion kWh (1996)

Electricity--imports: 15.9 billion kWh (1996)

Agriculture--products: grains, sugar beets, potatoe