Its OECD economic survey points out that, while Sweden is among the few countries where economic output has surpassed the level it was at before the 2008 global financial crisis, gross domestic product per capita has not grown over the period. 

 

The economic think-tank said the Swedish economy had been among the most resilient in Europe, despite slow global recovery and high uncertainty, but warned that challenges remain if it is to maintain high growth.

 

‘Sweden has navigated through the crisis with limited damage, thanks to a combination of strong macroeconomic, fiscal and financial fundamentals, the contribution of a competitive and diversified business sector and inclusive social policies,’ OECD secretary-general Angel Gurría said.

 

‘But this should be no cause for complacency, because Sweden, like any other country, still faces challenges to stimulate productivity growth, improve educational outcomes and ensure that tomorrow’s workers have the skills for thriving in a 21st century economy.’

 

The OECD welcomed the government’s effort to create an Innovation Council last month, which will focus on innovation and how it can help strengthen the global competitiveness of Swedish companies. But the economic think-tank said Sweden should avoid narrowing its focus on high-tech sectors, and instead promote investment in all forms of knowledge-based capital.

 

The OECD also raised concerns about a decline in Sweden’s educational results and said the government should seek to raise the attractiveness of the teaching profession.

 

It also said support should be enhanced for struggling students, particularly immigrants, helping them to learn Swedish and achieve good educational outcomes.

 

It proposed that the government increase the flexibility in entry-level wages and reduce the employment protection gap between workers on temporary and permanent contracts.