In 2014 and early 2015, GDP and employment growth in Sweden were supported by expanding domestic demand. As external demand gradually improves, investment and stronger exports will help Sweden's GDP growth rise further. The employment rate is already close to pre-crisis levels but due to a growing labour force, unemployment has been stuck around 8% for several years. Despite being one of the most competitive economies in the EU, Sweden has been continuously loosing export market shares since 2008 and the current account surplus has been gradually declining, which will likely continue. After the nadir in 2014, public finances are expected to improve in 2015.
Sweden is experiencing macroeconomic imbalances, which require policy action and monitoring. In particular, household debt remains at very high levels and keeps expanding as a result of increasing house prices, persistent low interest rates, still high tax incentives and housing supply constraints. Macroeconomic developments linked to private debt continue to deserve attention.
Read a complete analysis of Sweden's economy in the country report 2015 [984 KB]
2015 recommendations in brief
The Commission has made one country-specific recommendation to Sweden to help it improve its economic performance. It is in the area of: housing market.