Sweden: 2002 Article IV Consultation-Staff Report; Staff Statement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Sweden
IMF Staff Country Reports, August 7, 2002
Source details
- Canonical URL
- Sweden: 2002 Article IV Consultation-Staff Report; Staff Statement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Sweden
Other formats
Bibliographic details
- Published: August 7, 2002
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451835892.002
Summary and main findings
- A cyclical slowdown in domestic demand coupled with global economic weakness led to slower growth of Sweden in 2001.
- Private consumption stagnated despite rising disposable income, owing to adverse confidence and wealth effects from the continued plunge in stock prices.
- Exports suffered their weakest year in a quarter century, as telecom exports—the driving force behind the recent rapid growth—fell by about one-third.
- The weak krona and supportive fiscal and monetary policies helped contain the severity of the slowdown.
Macroeconomic developments and indicators
- Year of pronounced slowdown: 2001.
- Sectoral shock: telecom exports fell by about one-third.
- External environment: global economic weakness contributed to export deterioration.
- Domestic demand: cyclical slowdown; private consumption stagnation despite rising disposable income.
- Exchange rate and policies: weak krona; fiscal and monetary policies described as supportive.
Policy assessment and implications
- Supportive fiscal policy helped mitigate the downturn (no further numeric details provided in the source content).
- Supportive monetary policy similarly helped contain the severity of the slowdown.
- Confidence and wealth effects from falling equity prices had a material negative impact on consumption behavior.
Content in this bundle
- IMF Concludes 2002 Article IV Consultation with Sweden