Assessment and recommendations

With an active, forward-looking approach to economic reform, Sweden has enjoyed considerable international attention in recent years. Around 1970, Swedish GDP per capita was less than 10% below that of the United States, but following the deep crisis in the early 1990s the gap had widened to nearly 25%. Sweden has since started to catch up as market-oriented reforms boosted productivity growth and, most recently, reforms to promote the attractiveness of work have reduced the share of adults living on income benefits. This Survey focuses on how Sweden can continue to catch up via better policies to promote economic growth. Pursuing a growth-oriented reform agenda can help with social cohesion: a growing tax base would ease pressures on public finances and measures in education and labour markets could promote more equal employment outcomes and equality of opportunity. 