OECD economic surveys Sweden. 2012 / Organisation for Economic Co-operation and Development.

Includes bibliographical references.

Table of contents; Basic statistics of Sweden, 2011; Executive summary; Key policy recommendations; Assessment and recommendations; Key challenges; Figure 1. Sweden's growth performance has been strong; The economy is performing well but is facing risks; Growth is slowing down from high rates but should regain strength; Labour market outcomes are good but some groups are at risk; Table 1. Short-term economic outlook; Figure 2. Unemployment remains high; Figure 3. The foreign-born are not well integrated into the labour market; Income dispersion is low but has risen.

Figure 4. Inequalities are low but risingFigure 5. The tax and transfer system reduces inequality considerably; High household and corporate debt could lead to disruptive deleveraging; Figure 6. Household debt has increased; Figure 7. Real house prices have increased substantially; The banking system is large, concentrated and dependent on short-term wholesale funding; Figure 8. The banking system is large and concentrated; Macroeconomic and financial policies; Monetary policy for stability and growth; Figure 9. Inflation has fluctuated around the 2% target.

Table 2. Inflation over the past 15 years in Sweden and the European UnionEnhancing financial stability; Upholding fiscal prudence while preserving the welfare system; Figure 10. Sweden's fiscal position is among the best OECD-wide; Figure 11. The pension replacement ratio will be low for average income earners; Figure 12. Efficiency gains could be achieved in health care; Box 1. Main recommendations for macroeconomic and financial policies; Labour market and social policies for greater inclusion; Combining supply-side and demand-side labour market policies.

Figure 13. The minimum cost of labour is relatively highImproving the efficiency of support to the non-employed; Figure 14. Unemployment and inactivity traps are relatively high; Education policies to promote integration and ease transition to the labour market; Figure 15. PISA results are lower for students with an immigrant background; Further improving women's employment opportunities; Figure 16. The gender pay gap has remained constant in Sweden; Box 2. Main recommendations for labour market and social policies; Enhancing the efficiency of capital taxation and the housing market.

Improving the design of capital taxationFigure 17. Property taxation is low; Addressing the structural problems in the housing market; Figure 18. Price levels for housing investment are relatively high; Box 3. Main recommendations for enhancing the efficiency of capital taxation and the housing market; Raising the efficiency of climate change mitigation policies; Figure 19. Taxes on energy in Sweden are high; Box 4. Main recommendations for climate change mitigation policies; Bibliography; Annex A1. Progress in structural reforms.

OECD's 2012 Economic Survey of Sweden examines recent economic developments, policy and prospects before taking a more detailed look at labour and social policies as well as housing and financial markets.