Sweden

1965

43 S.

Monographie

7000

111890

The Swedish economy has expanded fast in recent years, notably in 1964, and further expansion would seem likely in 1965, although at a lower rate than last year. There is a danger that pressures on the labour market will continue, and possibly increase, with the likelihood of further considerable wage-drift. It would seem important to achieve a better overall balance in the labour market, and particularly to easethe strain in the building and construction sector. To these ends a rather tighter overall demand-management policy would have been desirable, particularly one including a more restrictive budget and stronger restraint on residential construction activity. This would have facilitated the financing of other types of investment, and increased the likelihood of a revival of industrial investment. It is important to prevent growing wage differentials and higher taxation from generating excessive increases in nominal incomes.