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FIGURE 2. Gross domestic product at market prices (U/OU) (Millions of U.S. dollars, at 1968 prices)

	1968		1971		Percentage Increase 1968-71
	Amount	Percent	Amount	Percent
Private consumption	13,803	58.0	17,111	54.3	26.1
Government current expenditure	4,733	19.9	7,088	22.1	49.8
Gross fixed asset formation	5,193	21.8	6,878	21.4	32.4
Private sector	2,258	9.5	2,869	9.9	37.2
Public sector	1,761	7.4	2,533	8.0	45.0
Housing	1,176	4.9	1,453	4.5	23.6
Changes in stocks	88	0.3	280	0.8	195.5
Net exports of goods and nonfactor services	0	0.0	400	1.4	...
Total	23,817	100.0	32,095	100.0	34.8

full employment, but considerable slack developed in 1971-72. To meet the demand for labor during the period of rapid expansion, especially in the industrial sector, some labor was imported from neighboring countries, more women were drawn into the labor force, and a major shift in the pattern of employment occurred, characterized primarily by a shift of manpower from agriculture to industry. Also mitigating the problem of inadequate labor supply was the substantial improvement made in labor productivity. These developments in manpower are discussed in detail in the chapter on the society under Manpower and Labor.

The major stimulus to economic growth since the early 1960's has come from the public rather than the private sector (Figure 2). Between 1963 and 1971, public consumption and investment increased considerably faster than their private counterparts, a trend consistent with the socialist orientation of the government. Accelerated public welfare expenditures have provided the greatest impetus to the growth of governmental consumption: educational expenditures alone now amount to almost 8% of the GDP. In an effort to promote industrial activity and efficiency, the government has increasingly channeled investment funds to industry through the expanding activities of the Investment Bank of Sweden. Additional public funds have been allocated through the state budget for investments in state enterprises, energy development, and infrastructure. Private consumption now accounts for a smaller share of the GDP than is typical elsewhere in Western Europe, while private investment has been depressed by the downward trend of industrial profitability.

Private consumption has not only declined as a percentage of the GDP, but it has changed in composition. In response to rising incomes, consumers now spend a notably smaller share of their incomes on food and clothing and a larger share on rent and other services. The distribution of consumer expenditures in 1960 and 1970 is shown in Figure 3.

FIGURE 3. Major components of private consumer expenditures (U/OU) (chart)

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APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200090018-7