{
  "title": "Tracing the Slowdown of Labor Productivity Growth: Sweden",
  "publication": "Selected Issues Papers, April 15, 2025",
  "sourceUrl": "https://www.imf.org/en/publications/selected-issues-papers/issues/2025/04/14/tracing-the-slowdown-of-labor-productivity-growth-sweden-566202",
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  "summary": "Labor productivity in Sweden is among the highest in Europe but has been experiencing a secular decline since the GFC, similar to trends in other advanced economies.",
  "sections": [
    {
      "heading": "Executive summary",
      "content": "- Labor productivity in Sweden is among the highest in Europe but has been experiencing a secular decline since the GFC.\n- The decline mirrors trends in other advanced economies.\n- A multi-faceted solution is needed to address barriers to resource allocation across sectors and firms.\n- Proposed reforms by the authorities’ Productivity Commission could effectively address these issues.\n- Given the evolving structure of the Swedish economy, policies that facilitate the growth of services sector firms would be particularly beneficial."
    },
    {
      "heading": "Drivers of Sweden’s strong productivity performance",
      "content": "- Skilled labor force.\n- Competitive business environment.\n- High R&D investments.\n- Deep financial markets."
    },
    {
      "heading": "Evidence of the productivity slowdown and underlying frictions",
      "content": "- Secular decline in labor productivity growth since the GFC.\n- Barriers to resource allocation across sectors and firms identified as contributing factors."
    },
    {
      "heading": "Policy recommendations and reforms",
      "content": "- Implement the multi-faceted reforms proposed by the authorities’ Productivity Commission to address allocation frictions.\n- Prioritize policies that facilitate the growth of services sector firms given the evolving structure of the Swedish economy.\n\n---\n\n Content in this bundle\n\n- Sipea2025037\n  - Sipea2025037 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Sipea2025037 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/selected-issues-papers/issues/2025/04/14/tracing-the-slowdown-of-labor-productivity-growth-sweden-566202"
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    "Authors: Xin Tang",
    "Published: April 15, 2025",
    "Series: Selected Issues Papers",
    "DOI: https://doi.org/10.5089/9798229009485.018",
    "Labor productivity in Sweden is among the highest in Europe but has been experiencing a secular decline since the GFC.",
    "The decline mirrors trends in other advanced economies.",
    "A multi-faceted solution is needed to address barriers to resource allocation across sectors and firms.",
    "Proposed reforms by the authorities’ Productivity Commission could effectively address these issues.",
    "Given the evolving structure of the Swedish economy, policies that facilitate the growth of services sector firms would be particularly beneficial.",
    "Skilled labor force.",
    "Competitive business environment.",
    "High R&D investments.",
    "Deep financial markets.",
    "Secular decline in labor productivity growth since the GFC.",
    "Barriers to resource allocation across sectors and firms identified as contributing factors.",
    "Implement the multi-faceted reforms proposed by the authorities’ Productivity Commission to address allocation frictions.",
    "Prioritize policies that facilitate the growth of services sector firms given the evolving structure of the Swedish economy.",
    "**Sipea2025037**"
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