The main features of economic development part 2

In the interwar period, Sweden the rate of growth second only to United States runway. However, a serious blow to the economy suffered two deep economic crisis: in the 1921-1922 biennium. as a result of deflation after the First World War, which led to a drop in industrial production by 25% lower than in 1913, and in the early 30's, when unemployment among union members in 1933 g.sostavlyala 25%.
In the postwar period, Sweden's economy has developed rapidly. This was her "golden" years. The main factor in this development has been exported. Productivity growth averaged 5.1% per year in the first half of the 60's and 4.3% in the 1965-1974 biennium. This was due to significant investment and progress in employment policies.

In the 70-s growth slowed. After the energy crisis of 1973-1974. in the industry raised a number of serious problems. To a large extent, this was the result of a very deep and prolonged global crisis Sulfur-Dina 70-ies. Sweden was struck by the profound structural crisis. About 25% of industrial production accounted for by industries affected by the crisis: Mining mining, iron and steel, timber and shipbuilding. Increased international competition loss. On the world market came out countries with low labor costs-mi. Reduce the cost of transportation. Sharply increased crude oil prices. At the same time the competitiveness of Swedish industry has declined in the 1975-1976 biennium. When the cost of labor increased by about 40%. As a result, the Swedish industry has lost over 1975-1977 he. Almost 20% of its share in world rovom market.

Excess capacity and low world demand for iron and steel had a negative impact on the steel industry in Sweden. The timber industry lost its position under the pressure of competition, especially from North America. Big global excess capacity in the world shipbuilding industry, coupled with weak demand as the new ships, as well as the chartering of vessels dramatically reduced production in Sweden. Manufacture of shoes and clothes had a very serious competition from the hand of some developing countries, where labor costs were much lower than in Sweden. To avoid too drastic structural changes in the industry and quickly rising unemployment, the state since the mid 70's to early 80-ies has provided significant amounts of assistance from the affected sectors, particularly iron and steel, shipbuilding and mining industries.