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Timber, hydropower, and iron ore constitute the resource base of an economy heavily oriented toward foreign trade.Privately owned firms account for about 90% of industrial output, of which the engineering sector accounts for 50% of output and exports.Predictions pointed toward even lower future growth, with the central bank assuming zero growth for 2009.

The package was designed to guarantee bank borrowing and to create a government fund to take direct stakes in the banks.

Sweden's long- successful economic formula of a capitalist system interlarded with substantial welfare elements was challenged in the 1990s by high unemployment, rising maintenance costs, and a declining position in world markets.

Indecision over the country's role in the political and economic integration of Europe delayed Sweden's entry into the EU until 1995, and waived the introduction of the euro in 1999.

By the early 21st century it had emerged as a European centre of telecommunications and information technology.

In 2008 Sweden began the year with a period of high and sustained economic growth but later experienced a marked slowdown in line with the global economic and financial downturn.

It came as a shock for the entire country when automobile manufacturer Volvo (a subsidiary of the American Ford group) in October notified 3,300 blue- and white-collar workers that their jobs were being eliminated.

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