The OECD's survey of the Swedish economy considers: recent economic developments and long-term prospects; macroeconomic policy; raising economic capacity; and a special feature on public spending management and strategies for improving the effectiveness of public expenditure. Sweden's economic performance has remained robust despite the slowdown last year and its prospects are bright. Macro-economic policies may need to adjust as the economy picks up, while structural reforms are needed to assure better medium-term growth prospects. However, the momentum of structural reform has slackened and further progress is needed across a range of policy areas, especially the labour market, to maintain growth in living standards and to meet the costs of a generous social welfare system and coming demographic challenges.
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