The official currency of Sweden is the krona (SEK). Until 1873, the accepted currency in Sweden was the riksdaler, but the krona replaced it when Sweden joined the Scandinavian Monetary Union with Denmark and Norway. The union lasted until World War I when the countries each broke off into their own respective currencies, but Sweden chose to keep the name krona. The krona is divided into 100 ore.
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Political Structure
The Kingdom of Sweden is a constitutional monarchy. The King of Sweden is Carl XVI Gustaf, but he plays no role in the government. Instead, the prime minister leads the parliamentary government. The legislature also referred to as the unicameral Riksdag, which consists of 349 members that are directly elected to four-year terms.
Prominent Figures
Prime Minister of Sweden: Fredrik Reinfeldt
Central bank of Sweden: Sveriges Riksbank (led by a six-member executive board)
Chairman of the Executive Board: Lars Heikensten (Governor of the Riksbank)
Unique Characteristics
Due to the extent of foreign trade in Sweden, the value of exports usually slightly exceeds that of imports. The main imports are machinery, manufactured goods, motor vehicles, foodstuffs, petroleum and petroleum products, and chemicals; the chief exports are machinery, manufactured goods, iron ore, iron and steel, motor vehicles, chemicals, and forest products. Sweden's main trade partners are Germany, Great Britain, Denmark, France, Norway, Finland, and the United States. Sweden was a member of the European Free Trade Association from 1960 to 1994, but in 1995 it joined the European Union. Due to the large amount of foreign trade, the krona is constantly dependent on the economic status of other currencies, which makes it very volatile.
Key Economic Factors
After suffering a severe recession in the early 1990s, Sweden's economic growth has been strong since the late 1990s and the dawn of the 21st century. The inflation rate historically has been low and stable, and the export sector has been extremely affluent since the mid 1990s (namely in the areas of information technology and telecommunications).
In 1997, while the European Union was in the process of preparing to implement a common currency, Sweden decided against adopting the euro as its official currency and has maintained that contention to the present day.
The fact that industrial production has been in the black through mid 2005 corresponds well to the GDP figures for the first quarter. The outcome was pretty glum, compared to the stellar performance of the Swedish economy in 2004, as seasonally adjusted real GDP grew only 0.3%. Amidst the negative figures, however, fixed capital formation came in strongly, suggesting that business investment is still buoyant. Looking from the production side, goods production took a beating in the first quarter, but still held up fairly well. This indicates that the industrial sector in Sweden is still strong, although a slowing from 2004's boom is to be expected, specifically since external demand has waned. The generally less positive outlook for the economy in 2005 is thus only partially dependent on a reduced contribution from the industrial sector; softer global demand and a darker outlook for the euro zone play a great part.
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