Sweden has among the EU’s lowest levels of national debt, low and stable inflation and a healthy banking system. But this wasn’t always the case. The Swedish economy used to suffer from low growth and high inflation, and the Swedish krona was repeatedly devalued. Sweden was also hit by a deep financial crisis in the early 1990s. Banks became unstable and two were nationalised, unemployment rose rapidly, government spending got out of control, and so did Sweden’s national debt.

The road back to stability and success was not easy for Sweden. But by pursuing inventive and courageous reforms and sticking to them, Sweden has transformed its economy and stayed strong in the face of the new global recession.
A balanced budget

Since the crisis of the 1990s, successive Swedish governments have been balancing the budget for over a decade, and have continued to do so even in the wake of the 2007–2008 global financial crisis. How is this possible?

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Source
http://sweden.se/business/how-sweden-created-a-model-economy/
Photo: Lena Granefelt/imagebanksweden.se