Sweden Prospers from Low Taxes, No Stimulus and Fiscal Discipline
Source of graph: online version of the WSJ article quoted and cited below.
(p. A9) STOCKHOLM--Sweden's economy, bolstered by solid exports and healthy consumer spending, is picking up considerable steam even as many of its European neighbors gasp for breath amid the struggle to contain the euro-zone debt crisis.
Sweden's second-quarter economic output data, released Monday, significantly outpaced expectations, further solidifying the Northern European country's reputation as a haven in a volatile period. The Swedish krona, which recently reached a 12-year peak against the euro, strengthened further after the report.
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. . . , Sweden has built a reputation for fiscal discipline since it suffered a financial crisis in the early 1990s. Successive governments have since stuck to a target to post a surplus of 1% of GDP over any business cycle.
Lawmakers resisted the temptation to borrow to fuel growth during the boom of the early 2000s, which meant Sweden hit the global financial crisis of 2008 and 2009 with strong public finances. The government hasn't needed to increase taxes in the way Spain has, or to cut spending as in the U.K.
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(Note: the online version of the article was dated July 30, 2012.)