The Swedish economy is one of the world’s most stable economies. It has become successful in keeping its inflation rate stable at an average rate of 4.18 percent from 1980 to 2010 with a high of 15.5 percent in October 1980 and a record breaking low of -1.6 percent in September 2009. After the World War II, the Swedish economy has developed drastically. With the export oriented economy, Sweden has achieved such a high growth rate and became one of the most economically powerful and stable countries of the world within a few years. Even after the recession of 2008, Sweden revived its economy in a better and faster way than other European countries. All these things help to keep the Swedish krona stable and as powerful if not more than many other currency systems.
Swedish Krona is the ninth most traded currency in the world market. The value of Swedish krona in comparison to U.S. dollar has fluctuated much in the last decade or so. At the beginning of this century, the krona weighed around 9 kr to 9.4 kr for 1 USD, in 2001 it soared up to 10.5 kr for 1 USD and in the later years it decreased on regular interval. In 2002 it fell to around 9 kr, in 2003 around 8 kr, in 2004 and 2005 it was around 7 kr, in 2006, 07 and 08 it was around 6.5 kr. but in 2009 it again rose slightly and reached around 8.5 kr. At present, in March 2011, 1 USD is equivalent to 6.33 kr.
Sweden has been able to keep the growth rate stable because of its excellent communication system, modern distribution system and well-trained labor force. In 2003, Swedish people turned down the offer to switch into Euro system in order to keep their economic growth stable. The private sector contribution is almost 90 percent in the overall GDP in which 50 percent of the output comes from the engineering sector and a mere 1 percent from the agriculture sector.
The GDP of Sweden has always been stable after World War II except from the crisis of 1990. In 2008, due to the world recession, export of Sweden reduced a great amount as the consumption capability of the world market decreased. Thish cut down the GDP. But after the recession it has become able to make a quick come back to its position within very short time. The GDP of Sweden soared up to 7.73 percent in the fourth quarter of 2010. It is the highest GDP since the authority started recording data quarterly in 1970. All these economic conditions has made the Swedish Krona a powerful currency system at the present time.
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