Sweden's economic miracle: GDP, key industries, exchange rate

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:40

It is often stated in the media that Sweden is a country of victorious socialism, where the well-being of people is a priority not only for the government, but for the whole people. The Swedish economy has a "human face". This means that the key role in it is given to the person, his efforts and work. This allowed Sweden to turn from a backward country into an economic giant in just 100 years.

Sweden's secret to prosperity

Thanks to the neutral policy of Sweden in the international arena and the policy of non-intervention, the Kingdom of Sweden has received great opportunities to solve its own internal problems, such as improving the level of he althcare, equalizing incomes of the population, building a developed infrastructure, overcoming demographic problems and others.

Sweden's external debt is the smallest in Europe. The country is trying to live within its means. Sweden learned this after the severe crisis of the 90s of the last century, during which the currency depreciated, the number of unemployed increased, the economy did not develop, and entire sectors showed a negativedynamics. A number of reforms helped to stabilize the situation and balance the budget.

Swedish GDP per capita exceeds the amount of external debt per capita. This year, the GDP indicator is already 27.5 thousand dollars, and the debt is slightly more than 16 thousand dollars per person. GDP (gross domestic product) is the amount of goods produced by a country in monetary terms per capita.

High level of employment. The government allocates a lot of money for this. Education, training and retraining of personnel is the basis of the Swedish model of the economy.

Key sectors of the economy

The Kingdom of Sweden is characterized by a high level of concentration of capital in several major sectors of the economy. In fact, the entire Swedish economy is supported by just a few huge corporations, which account for up to 90% of the money supply and output.

The top sectors that generate the largest GDP growth in Sweden are:

1. Forestry and timber processing. More than half of Sweden is occupied by forests. Logging is carried out by both large companies and residents. About 50% of the forest fund is in private hands. The share of wood processing is high in the country, within the country it reaches 45%. More than 40% goes to raw materials for pulp or furniture production, the rest is used as a material for desoldering premises.
2. Mining industry. Iron and copper are mined in Sweden. Iron ore from Swedish quarries is of high purity
3. The engineering industry bringsSweden's budget for about half of all revenues. Most of the machines are exported to the USA. The most famous brands are Volvo and Saab.
4. Energy. Sweden cannot provide itself with electricity on its own. The country produces one third of the energy the country needs.
5. Metallurgy. The country is known for the production of high quality steel. There are many steel mills in Sweden, the largest of which is located in the city of Domnarvet.

Real GDP

Swedish GDP exceeded $573 million in 2017, according to economists. This is 2.28% more than the previous year. The country's economy has been showing steady growth for a long time.

The graph shows that since 2010 Sweden's GDP has shown a positive trend. The last decline in GDP was observed in 2009, the loss amounted to 25 billion US dollars. As a result of the reforms, the economy has leveled off and shows moderate annual growth.

National currency rate

On average, a little more than 7 rubles will be given for one Swedish krona. In 2018, the lowest exchange rate of the Swedish krona against the ruble was observed on March 1. Ten crowns cost 68,209 rubles. The highest rate was recorded on April 12, 2018. During this period, for 10 crowns one could get 77, 104 rubles.