OECD economic surveys Sweden July 2021

Basic Statistics fo Sweden, 2019
Executive summary
	The pandemic has taken a heavy toll
	Policy needs to lay the foundations for a sustainable recovery
	Regional disparities are widening
1 Key policy insights
	COVID-19 has hit the economy hard
	Vaccines bring hope for a gradual return to normality
	Growth is picking up but uncertainty remains high
	Extensive policy support has mitigated the impact of the crisis
	Public finances are robust but debt will rise with population ageing
	Monetary and financial policy has buttressed the financial system
	Some financial vulnerabilities remain
	Weak money laundering controls have been an issue in some banks’ foreign subsidiaries
	Facilitating resource reallocation is essential for the recovery
	Education policy measures are starting to bear fruit but challenges remain
	Structural reforms could boost long-term growth
	Wider diffusion of digitalisation would boost productivity
	The green economy offers new growth opportunities
	References
2 Keeping regional inequality in check
	Regional inequalities are increasing albeit from a low level
	Sweden is among the most decentralised OECD countries
	The equalisation system compensates most differences in tax capacity and costs
	Regions and municipalities face diverse challenges
	The central government is increasing its support to municipalities and regions
	Digitalisation offers opportunities to enhance public service delivery
	Promoting regional growth and employment is essential
	Recommendations to contain the rise in regional inequality
	References
		Annex 2.A. Regional differences in productivity in Sweden: insights from OECD regions
	Productivity across Swedish regions
		Regional differences in productivity are relatively small in OECD comparison
		Connectivity reflects wide variations in population density
		Knowledge-intensive activities are geographically concentrated
		Research and education levels are higher in the large metropolitan areas
	What factors are associated with high productivity across OECD regions?
		Data
		Panel regressions
		The results suggest the relevance of the following factors for regional productivity:
	References