Sweden Economy Future Outlook
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[pic 1][pic 2]Individual Contribution Statement Introduction Turki AlshareefSweeden Econmy Sami AlmuhaisenGDP Sami AlmuhaisenUnemployment Sami AlmuhaisenInflation Sami AlmuhaisenPhilips Curve Sami AlmuhaisenMajor Economic Policies in Response to the Problems Turki AlshareefSweden Economy Future Outlook Sami AlmuhaisenSweden Economy Future OutlookContentsIntroduction Sweden Economy History Present Time Gross domestic product (GDP) Unemployment: Inflation Philips Curve Major Economic Policies in Response to the Problems Sweden Economy Future Outlook References: Introduction: Kingdome of Sweden is a Scandinavian country that is located in the north of European Continent. It is considered as the third largest country in European Union (EU) by land area. The Swedish economy represents a good example of how different macroeconomic tools can be manipulated to overcome the financial turmoil and crisis. It is a small open economy, which is affected largely by surrounding, and the international economy. In this report, we will study the historical trends if Swedish economy in the last three decades. We will look at the two major financial crisis that took place in early 1990s and 2008 and how did that reflected on the macroeconomic indicators of Swedish economy. We will also highlights the economic policies and interventions that took place to stabilize Swedish economy over the past three decades. Finally, we concluded by brief prediction of the possible future changes of the macroeconomic indicators. Sweden Economy History Before 1845 Sweden was poor century its economy was based mainly on agriculture in addition to the neutral resources like iron and forest. Agriculture in Sweden old times was labor intensive and it was not efficient in using the resources. After 1846 a major change happen in Sweden economy that manly in response to the liberal reform that happen at that year which pull apart the whole guild system. The Guild system but some restriction on who can perform certain type of work, where and how. This restriction worked against innovation which one of criteria that helped Sweden economy to grow and flourish. After removing the restriction Sweden start to see improvement on its resource utilization with large-scale agriculture production utilizing technology advancement and reduce the dependence on labour force which open the way for the industrial revaluation by creating the products demand “in form of agriculture machinery” and the supply of labour “ exce from agriculture industry “. The industrial advancement allow Sweden export to grow the main products were iron ore, copper and timper. That was also support by the increase in the world demand due to the economic development in Europe. At 19 the century a new movement that greatly supported the Sweden economy and that was the free trade which allow Sweden to access the rest of European market. A great Swedens’ inventors with their innovation put the corner stone of Swedish’s multinational corporations like Ericsson and ABB. This mark the second Sweden’s industrial revaluation.
The large investment In the inferstrcure play an important role in facilitating the industrial revelation such as railroads and telegraph system.[pic 3] [pic 4]Figure( 1)Map That Shows The Mineral distrubuation in Sweden Sweden Economic map Present Time The body of economic legislation in Sweden is the Riksbank one of its goal is lower inflation rate and more price stability. The Economy relay heavily on the Export of goods and services and it has one of the best walfaer system in the world. The public sector participate in large part of GDP that because of high tax level .Gross domestic product (GDP) GDP which is the value of all final goods and services the produced in a year period within the country. And it is one of the important economic indicators it is constructed from multiply factors which are C represent the private consumption or consumers spending G represent Government spending I represent the sum of all investment NX represent the export minus the import In our report we will present Sweden GDP since 1980 which was around 91 M USD from that time Sweden kept its positive GDP growth despite the sit back that happen in 2009 which resulted in drop by 4.4% due to world recession [pic 5]In GDP growth it is clear the impact of two economic crises on Sweden economy the firest on was in 1991-3 and the second on was in 2008-9. In the first the nominal growth was less than 0.27 % and in the second was -4.5 % [pic 6]The Real GDP show clearer picture about the impact of the two economic crisis in both Sweden reordered negative growth [pic 7]The next graph shows GDP per capita which start at 11,000 USD in 1980 to 47,000 USD in 2014[pic 8]As Sweden depend heavily on exporting the below graph show how much the export participate in the total GDP starting from 1985 which was 33.62 % up to 2014 which was 44.5 %