The Economy of Sweden

Aided by peace and neutrality for the whole of the 20th century, Sweden has achieved an enviable standard of living under a mixed system of high-tech capitalism and extensive welfare benefits. It has a modern distribution system, excellent internal and external communications, and a skilled labor force.

Timber, hydropower, and iron ore constitute the resource base of an economy heavily oriented toward foreign trade. Privately owned firms account for about 90% of industrial output.

The Swedish central bank (the Riksbank) focuses on price stability with its inflation target of 2%. In September 2003, Swedish voters turned down entry into the Euro system concerned about the impact on the economy and sovereignty.

The currency of Sweden is the Swedish Krona.