Sweden is an export-oriented and mixed economy that featured a modern economic system, a skilled labor force, and excellent internal plus external communications. The gross domestic product per capita of Sweden is among the highest ones in the EU. Almost every developed country was gone through the financial crisis, their economies were paralyzed, and the future prospects of the countries were muddied.
Then there comes the economy of Sweden being the rock star of the recovery from those crises. Being a Scandinavian nation of approx. 9 million people, Sweden has accomplished the height of economic success about which the United States, Japan, and Britain can only dream of. The Swedish economy is growing rapidly creating thousands of jobs for its people and gaining a competitive edge over time.
Sweden’s economic freedom score was 75.2 according to a report of 2019, making its economy the 19th freest in the 2019 Index. Below are the 4 secrets that everyone should know about the Swedish economy:
- Well-equipped for Economic Slowdown
The Sweden economy has improved a lot during recent years and the growth has been marked high than usual. However, the economy was slowed down in the first quarter of 2019, but the resource allocation was still higher than the normal capacity that makes the economy well-equipped for any probable economic slowdown.
The risks of weaker economic growth had risen during the first half of 2019 (especially during summers) due to global events going on. The employment rate is, however, still high than in neighboring countries. The reforms of the Swedish government during the economic downfall have helped to make it a stronger economy among others and can now withstand any slowdown in the economy very effectively.
- Economic stability
The inflation rates in Sweden are slow and the banking systems are really strong. Banks are the main source for lending money and the housing market is booming day by day. The economic growth rate was even higher than the United States and even stronger than any other developed country of Europe.
Historically, the Swedish economy was suffering from low growth and high inflation rates in the early 1990s, and the Swedish Krona was devaluing day by day. The path of economic growth, stability, and success were not that easy for Sweden. But, by pursuing inventive reforms and sticking to them, Sweden has successfully transformed its economy and is now
among the most stable economies of the world. Sweden has paved the way for robust growth in the era of economic uncertainty and instability.
- Taxation System
The Swedish government raised the hidden and indirect taxes to collect the revenues without highly pressurizing the Swedes. Most of the swedes are unaware of the fact that how much indirect tax is levied on them and that’s why they aren’t that much bothered about the tax rates. Although, the tax rates are lowering each year to encourage innovation and entrepreneurship to foster economic growth in the past decade. The collected taxes are used for improving the healthcare system and for the betterment of the public systems. This is the hidden secret to the economic stability of Sweden.
- Free market
During the 1990s, the concepts of free-market were introduced among the people that even surpass the United States with passing years. Economic freedom was limited earlier and kept on increasing each year as the government bring new reforms and updated the regulations. Swedish economy’s key feature, nowadays, is its openness to do business and liberal approach to trade. The present economic and social prosperity of Sweden was built on the lessons learned from the financial crisis in the early 1990s.