Sweden: 2005 Article IV Consultation — Staff Report; Staff Statement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Sweden

IMF Staff Country Reports, September 15, 2005

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Sweden: 2005 Article IV Consultation — Staff Report; Staff Statement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Sweden

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Bibliographic details

• Published: September 15, 2005
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9781451948691.002

Executive summary and key findings

• Strong productivity gains, wage moderation, and falling nonenergy import prices contributed to reducing inflation, and creating room for aggressive monetary easing.
• Export growth was led by a strong recovery in the telecommunications and automobile sectors.
• Rising capacity utilization and record low interest rates helped sustain a revival of business investment after a three-year slump.
• Rising disposable incomes and an expansionary monetary stance helped support consumer confidence.

Macroeconomic conditions and drivers

• Inflation: Reduced by a combination of strong productivity gains, wage moderation, and falling nonenergy import prices.
• Monetary policy: Room created for aggressive monetary easing due to lower inflationary pressures.
• External sector: Export growth concentrated in telecommunications and automobile sectors.
• Investment and utilization: Rising capacity utilization and record low interest rates supported a revival of business investment after a three-year slump.
• Domestic demand: Rising disposable incomes and an expansionary monetary stance supported consumer confidence.

Subjects and keywords (as listed)

• Subject: Fiscal governance, Fiscal policy, Inflation, Labor, Labor markets, Labor supply, Prices, Public debt
• Keywords: Central Asia, CR, East Asia, Europe, Fiscal governance, fiscal policy proposal, Global, government, growth, Inflation, inflation pressure, ISCR, Labor markets, Labor supply, Middle East, rate, spending of SEK, staff appraisal, year-on-year rate

International Monetary Fund. Sweden: 2005 Article IV Consultation — Staff Report; Staff Statement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Sweden (Country Report No. 2005/343), September 15, 2005.