SWEDEN / SALARY

Introduction

Sweden is a country found in Europe, it's the fourth largest country in Europe by land area. It has attractive scenarios such as inland lakes, mountains, and coastal islands.  The currency used for transactions is the Swedish krona.

Sweden has an export-oriented economy. The country is doing well economically, thus being ranked twenty-third globally for nominal GDP. If you are wondering why Sweden's economy is huge. The guide will help you know how various sectors contribute to the country's economy, Sweden's labor force, and inflation.

GDP

World Economic Outlook database estimates for 2021 is $ 612 billion for nominal GDP and $ 583 billion for Purchasing Power Parity GDP. The nominal GDP ranking for Sweden is 23rd globally. For GDP in terms of purchasing power parity, Sweden is ranked as the 40th globally.

The nominal GDP per capita estimate is $ 57,660 hence being ranked as the twelve largest globally, while the GDP per capita in terms of PPP is $ 54,953, making it number fifteen worldwide.

Sweden's GDP has a downward trend. The GDP growth for the year 2019 was 1.3 percent, respectively. In the year 2020 had a great drop of -4.7 percent. In the year 2021, the estimated GDP growth is 3.5 percent.

The service sector made the highest contribution to Sweden's economy in 2021. It had a GDP growth of 65.4 percent. Industries contribute 33 percent and the agricultural sector around 1.6 percent.

Economic sector

·       Agricultural sector

The agricultural sector accounts for about 1.6 percent of Sweden's GDP growth. We find that the percentage of people employed by this sector is two percent. The sector contributes to the country's economy by hiring staff and exporting the excess produce. The main agricultural products in Sweden are potatoes, grains, vegetables, fruits, and dairy products.

Sweden also does forestry, where you find a quarter is company-owned, another quarter is publicly owned, and a half is privately owned. The forests have facilitated small farmer's employment. The forest is a great source of timber which is Sweden's main export.

Fishing also contributes to Sweden's agricultural sector. The country has traditional fishing areas in the northern sea where salmon, lobster, and shrimps are fished.

·       Industry sector

The industry sector accounts for thirty-three percent of Sweden's economic growth. The main companies found in this sector include motor vehicles, foods processing, iron and steel, electronic equipment, and pharmaceuticals products. Some of the popular manufacturing industries include Volvo and Electrolux. Sweden's industry sector employs approximately 12 percent of the workforce.

The manufacturing companies produce their product in bulk quantities, thus facilitating exports to other countries. Sweden is a great export of timber and timber products.

·       Service industry

The service sector has the highest contribution to Sweden's economy.  The GDP growth of the service sector in the year 2017 was 65.4 percent. The service sector has also employed the largest workforce, which is about 86 percent. Sweden's economy has also boosted the export of services such as technology consultancy services. Tourism also plays a  major role in the GDP growth of the service sector.

Employment Sector

1.    Employment

In the year 2020, the number of employed people was 5,503,812. In the year 2019, Sweden had an employment rate of 81.1 percent. The service sector has employed the largest labor force, where most people are employed in business services and financial corporations. The industry sector is ranked second and agricultural third.

The employment rate has increased over the years. This is due to the increase in Sweden's population. The population increase has been linked to an increase in the number of immigrants and births. Most of the people are employed by the private sector. In Sweden men have more job placements than the female however over the years the gap has been narrowing. The average gross salary is $ 54,000 annually.

2.    Unemployment

Based on the unemployment by sex and age monthly statistics by September 2020, the countries unemployment rate was 9 percent. The youths who are mostly between the age of 15 and 24 account for approximately 28.9 percent of people unemployed. After the Covid 19 pandemic, the level of unemployment increased as some industries slowed down their production, and also, the government compensation schemes hindered some people from seeking employment.

Exports and Imports

Exports

In the year 2017, Sweden's exports amounted to $ 169.7 billion. The main goods exported include pulp and wood, iron and steel products, chemicals, military armaments, motor vehicles, machinery, and paper products. Sweden's largest exporter is Germany which accounts for 11 percent of the country's exports. Other main exporters include China, Netherlands, United States, United Kingdom, Finland, and Norway.

Imports

In 2017 Sweden's imports were approximately $ 154.8 billion. The main import partners include France, China, Finland, Belgium, United Kingdom, Denmark, Norway, Netherlands, and Germany. Sweden imports include petroleum and petroleum products, chemicals, foodstuff, clothing, iron and steel, motor vehicles, and machinery.

Inflation

Sweden's inflation has been decreasing over the years. The country's inflation rate for the year 2018 and 2019 was 2 percent and 1.3 percent, respectively.

World economic outlook database estimates for the year 2020 was – 4.7 percent. The estimates were low in 2020 due to Covid 19 pandemic, which adversely affected the economy adversely.

As of August 2021, Sweden experienced a 2.1 percent inflation rate. The high inflation rate resulted from the increase in transport, footwear, clothing, non-alcoholic beverages, and food.

On the other hand, there was a decrease in health, recreation, and communication prices. The estimate for inflation CPI for the year 2021 is 3.5 percent.

Conclusion

Sweden has an export-oriented economy. The production of iron ore, timber, and hydropower is the main reason for adopting that kind of economy. The country has a highly competitive and open market economy. Most of the companies are privately owned.  Sweden is the 23rd largest in the world in terms of nominal GDP. The service sector is the highest contributor to the Sweden economy, accounting for 65.4 percent and employing more than eighty percent of the workforce.

The main industries attributing to the high economic growth include pharmaceuticals, industrial machines, forestry, iron and steel, precision equipment, motor vehicles, and home goods and appliances.