## IMF Concludes 2002 Article IV Consultation with Sweden (Public Information Notice No. 02/80, August 7, 2002)

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### Background: policy framework and recent performance
- Executive Board concluded the Article IV consultation with Sweden on July 31, 2002.
- Sweden’s strong macroeconomic performance of the past five years is rooted in a credible, rule-based policy framework consisting of:
  - the Riksbank’s inflation targeting regime, and
  - a sound medium-term fiscal framework.
- Strong public finances have enabled a process of gradual reduction in the high tax burden to begin.
- Structural reforms reinforced by EU membership have helped raise efficiency and mitigated distortions associated with Sweden’s large welfare state.
- These policies contributed to growth averaging over 4 percent per annum during 1998–2000, driven by large productivity gains, especially in the technology sector.
- A thorough pension reform has restored actuarial balance to the public pension scheme in the face of the coming demographic challenge.

### Recent slowdown and cyclical developments
- A cyclical slowdown in domestic demand coupled with global economic weakness led to slower growth in 2001.
- Private consumption stagnated despite rising disposable income, owing to adverse confidence and wealth effects from the continued plunge in stock prices.

*International Monetary Fund, Public Information Notice No. 02/80 (August 7, 2002).*

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_Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2002/_cr02159.pdf_