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| The Kingdom of Sweden, a limited constitutional monarchy located in northern Europe between Norway and Finland, has an area of 449,964 sq. km. and a population of 9.04 million. Capital: Stockholm. Mining, lumbering and a specialized machine industry dominate the economy. Machinery, paper, iron and steel, motor vehicles and wood pulp are exported. A military power during the 17th century, Sweden has not participated in any war in almost two centuries. An armed neutrality was preserved in both World Wars. Sweden's longsuccessful economic formula of a capitalist system interlarded with substantial welfare elements was challenged in the 1990s by high unemployment and in 2000-02 by the global economic downturn, but fiscal discipline over the past several years has allowed the country to weather economic vagaries. Sweden joined the EU in 1995, but the public rejected the introduction of the euro in a 2003 referendum. |
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