To assess Sweden’s economic performance over the past decade and understand how stronger growth can be achieved in the future, MGI analyzed the country’s productivity and job creation performance at the sector level.
A sector level analysis of the automotive sector demonstrates how strong productivity growth is created in industries exposed to a high degree of competitive intensity. MGI found that Sweden’s labor productivity in the auto sector is level with Japan’s and 5 percent better than that of the U.S.
The Swedish retail sector has experienced strong productivity growth since the early 1990s, due to deregulation and increased competition. While product market conditions have improved, barriers to job creation need attention.
From 1995 to 2002, Swedish retail banking showed strong productivity growth due to deregulation and increased competition. Today, Sweden has one of the most productive banking sectors in the world, thanks to its payment and distribution mix.
Over the past 15 years, the Swedish processed food industry has evolved from sheltered to open to international competition, resulting in significantly improved labor productivity and significant consumer surplus.
Sweden’s construction industry illustrates how barriers in both the product market and the labor market impede development. Market conditions have inhibited labor productivity growth, which remains low.
Lean Russia: Sustaining economic growth through improved productivity Labor productivity in Russia remains low, but improvements have been promising. In five sectors – steel, retail, retail banking, electric power and residential construction – productivity stands now on average at 26 percent of U.S. levels in 2007. Read more
Sweden's growth paradox Productivity is rising, but the level of employment among working-age people actually declined from 1992 to 2003. Read more on the Mckinsey Quarterly site
A road map for European economic reforms To maintain adequate social programs, Europe must restore full employment and generate economic growth through regulatory reform. Read more
How offshoring of services could benefit France To capture more of the potential benefit from offshoring, France must focus on creating the jobs of tomorrow and increasing the flexibility of its labor market. Read more
Sweden’s economic performance (1995) By the early '90s, Sweden's once vaunted GDP per capita had fallen behind Italy's and the U.K.'s. Our report indicates that performance was strongly correlated with competitive intensity. Where competition thrived, Swedish industry was world class. Read more
