Background: A military power during the 17th century Sweden has not participated in any war in almost two centuries. An armed neutrality was preserved in both World Wars. Sweden's long-successful economic formula of a capitalist system interlarded with substantial welfare elements has recently been undermined by high unemployment rising maintenance costs and a declining position in world markets. Indecision over the country's role in the political and economic integration of Europe caused Sweden not to join the EU until 1995 and to forgo the introduction of the euro in 1999.
Ethnic groups: indigenous population: Swedes and Finnish and Lapp (Sami) minorities; foreign-born or first-generation immigrants: Finns Yugoslavs Danes Norwegians Greeks Turks
Legislative branch: unicameral Parliament or Riksdag (349 seats; members are elected by popular vote on a proportional representation basis to serve four-year terms)
Judicial branch: Supreme Court or Hogsta Domstolen judges are appointed by the government (prime minister and cabinet)
Political parties and leaders: Center Party [Lennart DALEUS]; Christian Democratic Party [Alf SVENSSON]; Communist Workers' Party [Rolf HAGEL]; Green Party [no formal leader but party spokesperson is Briger SCHLAUG]; Left Party or VP (formerly Communist) [Gudrun SCHYMAN]; Liberal People's Party [Lars LEIJONBORG]; Moderate Party (conservative) [Bo LUNDGREN]; New Democracy Party [Vivianne FRANZEN]; Social Democratic Party [Goran PERSSON]
International organization participation: AfDB AsDB Australia Group BIS CBSS CCC CE CERN EAPC EBRD ECE EIB ESA EU FAO G- 6 G- 9 G-10 IADB IAEA IBRD ICAO ICC ICFTU ICRM IDA IEA IFAD IFC IFRCS IHO ILO IMF IMO Inmarsat Intelsat Interpol IOC IOM ISO ITU MINURSO MONUC NAM (guest) NC NEA NIB NSG OAS (observer) OECD OPCW OSCE PCA PFP UN UNCTAD UNESCO UNHCR UNIDO UNIKOM UNMIBH UNMIK UNMOGIP UNMOP UNOMIG UNTAET UNTSO UPU WEU (observer) WFTU WHO WIPO WMO WTrO ZC
Flag description: blue with a yellow cross that extends to the edges of the flag; the vertical part of the cross is shifted to the hoist side in the style of the Dannebrog (Danish flag)
Economy overview: Aided by peace and neutrality for the whole twentieth 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 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. GDP growth is forecast for 4% in 2000 buttressed by solid consumer confidence.
Industries: iron and steel precision equipment (bearings radio and telephone parts armaments) wood pulp and paper products processed foods motor vehicles
Exports: $85.7 billion (f.o.b. 1999) Commodities: machinery 35% motor vehicles paper products pulp and wood iron and steel products chemicals Partners: EU 57% (Germany 11% UK 9% Denmark 6% Finland 5%) Norway 9% US 9% (1998)
Imports: $67.9 billion (f.o.b. 1999) Commodities: machinery petroleum and petroleum products chemicals motor vehicles iron and steel; foodstuffs clothing Partners: EU 68% (Germany 19% UK 10% Denmark 6% France 6%) Norway 8% US 6% (1998)