Sweden: Downturn in exports weakens the economy

In 2000 the strong economic upturn continued in the third quarter, with real GDP expanding by 3.6% and the labour market continuing to improve. The un-employment rate fell to an annualised rate of 5.9%, and consumer prices rose by only 1.3%. In 2001, real GDP should increase by about 2½%, thus again running nearly parallel to the expansion of production potential. At 5½%, the unemployment rate will again be lower than the Western European average in 2001.