Sweden - Industry

The basic resources for industrial development are forests, iron ore, and waterpower. Forest products, machinery, and motor vehicles are primary exports. Industrial production accounted for 29% of GDP in 2001. From 1990 to 1992, Swedish industry suffered as a result of the deep national recession as well as an overpriced labor pool. In those years, manufacturing output fell by 10%. Between 1989 and 1992, 260,000 Swedes lost their jobs in the manufacturing sector. As the economy has rebounded in recent years, however, especially the growth turnaround in 1994– 96, industrial output has grown. In 1996, it was up 17% from 1990. Between 1993 and 1996, industrial investments more than doubled. Industrial growth remained a solid 4.5% in 2001.

Since the end of World War II, emphasis has shifted from production of consumer goods to the manufacture of export items. Swedish-made ships, airplanes, and automobiles are considered outstanding in quality. Sweden's motor vehicle producers are Volvo and SAAB-Scania. In 2001, Sweden produced 286,147 automobiles, and in 2000, it produced 33,605 heavy trucks.

Before World War II, virtually the entire tonnage of iron and steel products consisted of high-grade steels, but in recent years exports have included considerable quantities of commercial grades. Transport equipment and iron and steel are of declining importance, however, while exports of machinery, precision equipment, chemicals, and paper have been growing in value. In the early 2000s, telecommunications equipment and automotive parts production were experiencing declines. Sweden's Ericsson is the world's largest producer of telecommunications equipment. Sweden has the largest number of biotechnology companies per capita in the world.