Economics of Sweden: Environment and Activities
In northern Europe, Sweden is situated in a geographical area known as Scandinavia. Lush, vast forests cover half of the country and over 100,000 lakes cover the landscape. The lakes and more than 24,000 islands are all open to the public in the Swedish tradition of the right to public access. Sweden is 977 miles (1572 km) long and borders Norway to the west and Finland to the east. Three stretches of water distinguish Sweden from Denmark—the Skagerrak, the Kattegat, and the Öresund. The Arctic North of Sweden has been named the "land of the midnight sun," because the sun never sets in the summer months. Even in the capital city of Stockholm in the south, the summer nights just last four hours and the sky doesn't get darker than the sunset. But the winter lasts till May, and the nights are long, and the days are short. In the autumn and spring, there are impressive light displays in northern Sweden known as "aurora borealis" or "northern lights."
Sweden is one of the least populous countries in Europe with a population of fewer than 10 million. Most people used to live in the countryside, but when the country became industrial in the 1900s, many migrated to the cities of Malmö, Göteborg, and Stockholm. In the 1930s, Sweden developed a welfare scheme known as the "Swedish Model." Under their scheme, all Swedes have access to publicly supported health insurance, unemployment compensation, childcare, schools, and elderly care. The people of Sweden also enjoy the countryside and were the first country in Europe to set up national parks.
When it comes to government, Sweden is a constitutional monarchy and a unicameral parliament. Elections are held every four years. There are 29 districts and elections. To receive Parliamentary seats, Parties must receive 4 percent of national voting. In Sweden, the king is the State Head. King Carl XVI Gustaf has only ceremonial roles and elected officials run the government. The "Riksdag" or the Swedish parliament has 349 members. The parliamentarians will vote for a Prime Minister who will then nominate cabinet members. Sweden is a member of the European Union, but it does not use the euro as a currency. They retained their currency, the Swedish crown, as a way to maintain their name. The Swedish economy is steadily emerging from the recession of COVID-19. Overall, GDP is expected to grow by 3.3 percent in both 2021 and 2022. However, high unemployment and continuing distancing will restrict household demand pick-up. Poor capacity usage and volatility are pushing back company spending. Exports can eventually continue to pick up as the global economy improves. Despite the economic growth, unemployment will steadily drop, as rises in working time from low levels will precede new recruitments.
Sweden's natural resources include copper, coal, hydropower, iron ore, lead, silver, timber, uranium, and zinc. Sweden's top products are Vehicles, Processed Petroleum, Branded Drugs, Automotive Parts, and Broadcasting Equipment, most of which are shipped to Germany, Norway, Denmark, the United States, and the Netherlands. In 2018, Sweden was the world's leading exporter of Automotive Chassis ($789M) and Iron Powder ($498M). The top imports from Sweden are Vehicles, Crude Petroleum, Refined Petroleum, Automotive Parts, and Broadcasting Equipment, mostly from Germany, the Netherlands, Denmark, Norway, and China.
Since the beginning of 2020 Coronavirus has affected the whole world as we knew it. Everyday life has taken some turns and many lives were lost due to this disease. Many countries are still finding ways to contain COVID 19and it affects the community, economy, and social structure, including Sweden. An interesting article I found during this semester involves Sweden's new foreign policy declaration. Although over time we have seen travel regulations due to covid be lifted, it seems that Sweden is moving forward with more regulations. First, their decision to enforce border controls on Sweden in March, and then their refusal to abolish controls until the level of infection in Sweden, and later in individual Swedish areas, dropped below a certain level. These regulations put a strain on Sweden's relationship with Denmark and Norway, its neighbors. Sweden's economy will of course take some damage as will every other country due to these travel regulations. I honestly feel that that Sweden is just trying to take the correct precautions and implement procedures that will prevent the spread of the virus. In the short, they might lose some business, and their economy might take a hit but considering Sweden is one of the world's biggest exporters, they should recover very well after Covid 19 passes.
