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Economy of Sweden


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port (16.1 million passengers in 2009) 40 km (25 mi) north of Stockholm, Gothenburg-Landvetter Airport (4.3 million passengers in 2008), and Stockholm-Skavsta Airport (2.0 million passengers). Sweden hosts the two largest port companies in Scandinavia, Port of Göteborg AB (Gothenburg) and the transnational company Copenhagen Malmö Port AB.

Public policy

Sweden has one of the most highly developed welfare states in the world. According to 2012 OECD report, the country had the second highest public social spending as a percentage of its GDP after France, and third highest total (public and private) social spending at 30.2% of its GDP. Sweden spent 6.3% of its GDP, the 9th highest among 34 OECD countries, to provide equal access to education. On health care, the country spent 10.1% of its total GDP, the 12th highest.

Historically, Sweden provided solid support for free trade (except agriculture) and mostly relatively strong and stable property rights (both private and public), though some economists have pointed out that Sweden promoted industries with tariffs and used publicly subsidised R&D during the country's early critical years of industrialisation. After World War II a succession of governments expanded the welfare state by raising the tax level. During this period Sweden's economic growth was also one of the highest in the industrial world. A series of successive social reforms transformed the country into one of the most equal and developed on earth. The consistent growth of the welfare state led to Swedes achieving unprecedented levels of social mobility and quality of life—to this day Sweden consistently ranks at the top of league tables for health, literacy and Human Development—far ahead of some wealthier countries (for example the United States).

However, from the 1970s and onwards Sweden's GDP growth fell behind other industrialised countries and the country's per capita ranking fell from the 4th to 14th
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