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 APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200090018-7

'''FIGURE 9. Value added in manufacturing, 1969 (U/OU)''' (chart)

5. Manufacturing (S)

Sweden's economy, although small, is one of the most highly industrialized in the world. Manufacturing accounts for about 30% of both GNP and employment, and for three-fourths of total exports. Manufacturing in Sweden, based on abundant iron ore, extensive forests, and low-cost hydroelectric power, covers a wide range of products from semimanufactures to machinery and transportation equipment of advanced design and high quality (Figure 8).

Producers of metals and machinery and transport equipment constitute the largest branch of industry, accounting in 1969 for almost half of all value added in manufacturing (Figure 9) and over 40% of Sweden's total exports. Ranking among the world's biggest enterprises of their kind, many of these firms rely on their own patented designs. Output of machinery and equipment has grown by an average of 9% to 11% annually in recent years. Sweden has maintained its position as the world's second-largest shipbuilding country, being surpassed only by Japan. Despite a lack of indigenous deposits of coal and petroleum, the chemical industry has developed into Sweden's most dynamic industry, particularly in the production of fertilizers and sulfuric acid. The food-processing industry, traditionally oriented to the domestic market, has developed rapidly and now exports considerably quantities of frozen vegetables and fish. The domestic textile industry, however, has been hit hard by cheap imports, and an average of nearly 25 firms closed annually during the 1960's. The garment industry, however, has built up a sizable export trade.

Outstanding technology and engineering have kept Swedish products competitive in world markets, despite the steadily rising costs of labor and materials.

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APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200090018-7