Sweden: Economy driven by upswing in exports and domestic demand

Swedish economic growth in 2003 was moderate although the Iraq war and the strong increase in the oil price had a retarding effect in the spring. The real gross domestic product increased by around 1½%, which was higher than the western European average. On the labour market the situation deteriorated clearly, the unemployment rate increasing to 5½% for the year. The cost of living increased by around 2.3%. In 2004 real GDP will expand by only 2¼%. The unemployment rate will increase to 5¾% for the year, and consumer prices will be around 1½% above the level of 2003. In 2005 real GDP will grow by approximately 2¾%. The unemployment rate will fall to 5½% and prices will grow by approximately 2%.