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Executive summary

Sweden has weathered the recent global financial and economic crisis well thanks to strong economic institutions and fundamentals, not least a sound fiscal position. The main challenge going forward is to strengthen institutions and fundamentals even further so as to keep enhancing resilience and sustainable long-term growth. The crisis has revealed that on the whole the monetary and financial framework is sound. Continuing labour market and education system reform is key to avoid entrenched long-term unemployment and to bring workers with weak attachment to the labour market back into employment. Sweden is contributing to global welfare through its ambitious actions to mitigate greenhouse gas emissions, but these targets could be achieved at lower cost.

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