The Swedish economy stalled in the first half of 2008 and is expected to weaken in the near term, as the effects of the international financial crisis take their toll. Consumption is projected to pick up late next year as the turmoil subsides and thanks to further income tax cuts and lower interest rates. Export growth should gradually recover as Sweden’s export markets expand again. Residential investment is expected to contract, with weaker house prices and confidence compounding unfavourable demographic patterns. Employment and labour force participation are both expected to decline, and labour productivity growth is expected to remain weak in the coming quarters.

The number of broadband subscribers in the OECD rose to 235 million by December 2007, up 18% from 200 million subscribers in December 2006.This growth increased broadband penetration rates to 20 subscriptions per 100 inhabitants, up from 16.9 in December 2006.

After posting very strong growth in 2006, the Swedish economy cooled during 2007, due mainly to weaker export growth. Domestic demand is expected to continue to grow markedly in the near term as strong employment growth and income gains should boost private consumption.

Her Royal Highness Crown Princess Victoria of Sweden visited the OECD headquarters in Paris on 4 December 2006. The Crown Princess met OECD Secretary-General Angel Gurría (photo), other senior officials of the OECD secretariat and Swedish personnel in the OECD. Crown Princess Victoria was participating in a diplomat training programme at the Swedish Ministry of Foreign Affairs. Discussions at the OECD covered the economy, agriculture, trade and early childhood education and care.

©OECD Observer, No. 258/259, December 2006

Sweden’s good reputation for a clean environment may be deserved, but there are murky spots. True, it gained high marks in the recent OECD Environmental Performance Review of Sweden. It was one of the first OECD countries to cut its use of environmentally harmful chemicals, and is one of the few OECD countries on track to meet their commitments under the Kyoto Protocol to limit greenhouse gas emissions.

Educating children is vital for maintaining our standard of living now and in the future. This thought is not new and most of us are well aware of it. What is new is the way we need to work to prepare our children for that future.

Ambassador Gun-Britt Andersson became permanent representative of Sweden to the OECD on 11 June 2003. She succeeds Anders Ferm, who had been Sweden’s ambassador to the OECD since December 1995.

Sweden's much loved and respected foreign minister, died tragically on 11 September 2003 from wounds sustained in a brutal stabbing at a Stockholm department store the day before.