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Sweden Economic Snapshot

23.03.2019 Economic Survey of Sweden

GDP has expanded at an average rate of close to 3% over the past five years (Figure A). 

Employment has grown steadily and the unemployment rate has fallen. But jobseekers are increasingly low-skilled and immigrants, who struggle to find jobs.

Economic growth will moderate as capacity constraints tighten. Growth will slow, as the economy now operates around full capacity and labour shortages appear in many sectors.

Rising employment has contributed to enhancing well-being and reducing poverty. However, robust capital income growth has pushed up inequality over the past few years. Nevertheless, inequality remains low, albeit higher than in the other Nordic countries (Figure B).

With inflation close to the 2% target, albeit with some help from rising energy prices, the time has come to begin withdrawing stimulus (Figure C). Inflation expectations are close to the target.

Housing prices have fallen since mid-2017, largely as a result of increased supply of tenant-owned apartments in big cities (Figure D), but seem to be stabilising.

Swedish school results have declined for two decades. Issues with design and implementation of a series of reforms in the early 1990s, coinciding with a deep economic crisis, likely contributed (Figure E). School inequalities, driven by residential segregation and school choice, likely reduce equality of opportunity.

GDP has expanded at an average rate of close to 3% over the past five years (Figure A). 

Employment has grown steadily and the unemployment rate has fallen. But jobseekers are increasingly low-skilled and immigrants, who struggle to find jobs.

Economic growth will moderate as capacity constraints tighten. Growth will slow, as the economy now operates around full capacity and labour shortages appear in many sectors.

Rising employment has contributed to enhancing well-being and reducing poverty. However, robust capital income growth has pushed up inequality over the past few years. Nevertheless, inequality remains low, albeit higher than in the other Nordic countries (Figure B).

With inflation close to the 2% target, albeit with some help from rising energy prices, the time has come to begin withdrawing stimulus (Figure C). Inflation expectations are close to the target.

Housing prices have fallen since mid-2017, largely as a result of increased supply of tenant-owned apartments in big cities (Figure D), but seem to be stabilising.

Swedish school results have declined for two decades. Issues with design and implementation of a series of reforms in the early 1990s, coinciding with a deep economic crisis, likely contributed (Figure E). School inequalities, driven by residential segregation and school choice, likely reduce equality of opportunity.