Along with the international upswing and after two of devaluations totaling 26 percent in 1981 and 1982, Swedish industrial production accelerated during 1983–1984. Since the end of 1984, however, the Swedish economy has again exhibited a tendency towards stagnation. The export- and investment-led upswing has come to an end in spite of favorable external conditions, good international competitiveness and high profitability in Swedish industry. Unsolved structural problems – temporarily concealed by the large devaluations – are beginning to reappear.
In this year’s report the SNS Economic Policy Group focuses on economic growth – the mechanisms behind growth and impediments to growth. A norm-based stabilization policy regime, which was advocated in last year’s report, is a necessary but not sufficient condition for growth. At the microeconomic level the vigor of the Swedish economy is hampered by serious growth impediments: a network of regulation, a distortionary tax system, public monopolies and an extremely compressed wage structure. The group presents a program for reform designed to set Sweden on a stable growth path.