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Regions and Cities at a Glance 2018 – http://www.oecd.org/regional

Economic trends in regions

Regional gap in GDP per capita, 2000-16 Index of regional disparity in GDP per capita, 2016

Top 20 % richest over bottom 20% poorest regions GDP per capita in USD PPP 2016 2000 Ratio 4 70 000 Small regions Large regions Highest region 65 000 (TL3) (TL2) 60 000 63 258 USD 55 000 3 50 000 Sweden 45 000 45 143 USD 40 000 2 35 000 Lowest region 30 000 36 136 USD 25 000 1 20 000 2000 2005 2010 2016

Country (number of regions considered) Regional disparities in terms of GDP per capita have slightly increased in Sweden over the last sixteen years, with North Middle Sweden having GDP per capita equivalent to 57% of the GDP per capita in Stockholm in 2016. However, Sweden remains a country with low regional disparities, as only two out of 30 OECD countries with comparable data report lower regional differences in GDP per capita. With a productivity growth of 1.7% per year over the period 2000-16, Stockholm had the highest productivity growth, as well as the highest level of productivity among Swedish regions. Central , where productivity growth was the lowest at 1% per year in 2000-16, has increased the productivity gap with Stockholm. has the highest youth unemployment rate (21.1% in 2017), seven percentage points higher than in Småland and above the OECD average.

Productivity trends, most and least dynamic regions, 2000-16 Youth unemployment rate, 15-24 years old, 2007-17 GDP per worker in USD PPP rate (%) 35 120 000 Stockholm: highest Highest rate 110 000 productivity in 2016 and 30 highest productivity South Sweden 100 000 growth (+1.7% average 25 21.1% Stockholm: highest 90 000 annual growth over productivity2000-16) growth 20 Sweden OECD 80 000 Sweden (+1.7% annually) 17.9% Central Norrland: lowest 15 70 000 productivity growth (+1% Lowest rate Småland with Islands 60 000 annually) 10 2007 2012 2017 14% 2000 2005 2010 2016 Source: OECD Regional Database. Notes: (1) Figure on regional gap in GDP per capita: OECD regions refer to the administrative tier of subnational government (large regions, Territorial Level 2); Sweden is composed of eight large regions. (2) Figure on index of regional disparity: top (bottom) 20% regions are defined as those with the highest (lowest) GDP per capita until the equivalent of 20% of national population is reached, this indicator provides a harmonised measure to rank OECD countries, using data for small regions (Territorial Level 3) when available. (3) Productivity is measured as GDP per employee at place of work in constant prices, constant Purchasing Power Parities (reference year 2010). Updated the 5th of March 2019

Differences in well-being across regions

Top region Bottom region Stockholm Regions (Riksomraden)

Central Småland with Central Småland with Central Småland with Norrland Islands Norrland Islands Norrland Islands North Middle Stockholm top top 20% Stockholm Sweden Upper Norrland

(1 to 402) to (1 North Middle South Sweden Sweden East Middle Småland with Sweden Islands Central North South South Sweden Småland with middle middle 60% South Sweden Sweden Islands Sweden

Central Stockholm

Norrland

Ranking Ranking OECD of regions bottom bottom 20%

Safety Community Environment Jobs Access to Life Health Income Housing Education Civic services Satisfaction Engagement Relative ranking of the regions with the best and worst outcomes in the 11 well-being dimensions, with respect to all 402 OECD regions. The eleven dimensions are ordered by decreasing regional disparities in the country. Each well-being dimension is measured by the indicators in the table below.

Compared to other OECD countries, regional well-being is high and regional disparities are generally low in Sweden. The widest regional gaps are found in safety and community, although in the case of safety the low performing region is close to the OECD median region. All eight Swedish regions rank in the top 25% of the OECD regions in civic engagement. High and low performing Swedish regions fare better than the OECD median region in all the 13 well-being indicators, with the exception of the perceived social network support, unemployment rate and rooms per person. About 97% of households in the high performing regions and 89% in the low performing ones have access to broadband connection.

Country OECD median Sw edish regions Average region Top 20% Bottom 20% Safety Homicide Rate (per 100 000 people), 2016 0.9 1.3 0.5 1.2 Community Perceived social netw ork support (%), 2013 92.4 91.4 93.7 90.9 Environment Level of air pollution in PM 2.5 (µg/m³), 2015 6.5 12.4 6.3 11.3 Jobs Employment rate 15 to 64 years old (%), 2017 77.0 67.7 79.4 74.2 Unemployment rate 15 to 64 years old (%), 2017 7.0 5.5 6.0 8.5 Access to services Households w ith broadband access (%), 2017 93.0 78.0 97.0 88.7 Life Satisfaction Life satisfaction (scale from 0 to 10), 2013 7.4 6.8 7.5 7.3 Health Life Expectancy at birth (years), 2016 82.4 80.4 82.9 81.8 Age adjusted mortality rate (per 1 000 people), 2016 7.3 8.1 7.1 7.6 Income Disposable income per capita (in USD PPP), 2016 21 276 17 695 23 982 19 928 Housing Rooms per person, 2016 1.7 1.8 1.8 1.6 Education Labour force w ith at least upper secondary education (%), 2017 85.1 81.7 86.4 83.2 Civic engagement Voters in last national election (%), 2017 or lastest year 85.9 70.9 86.6 84.4 Source: OECD Regional Database. Visualisation: https://www.oecdregionalwellbeing.org. Notes: (1) OECD regions refer to the first administrative tier of subnational government (large regions, Territorial Level 2); Sweden is composed of eight large regions. (2) Household income per capita data are based on USD constant PPP, constant prices (year 2010).

Updated the 5th of March 2019 Metropolitan areas in the national economy

OECD population is concentrated in cities* Percentage of population in cities, 2016 UnitedSweden States OECD average

people people in cities outside cities people 40% with population 30% people in cities 43% 9.9 million above 500 000 1.2 billion outside cities 55% with population people - 57% people - 70% above 500 000 live in cities live in cities people in cities with 6% population between 3% 50 000 and 250 000 9% people in cities with 14% people in cities with population between population between people in cities with population between 250 000 and 500 000 50 000 and 250 000 250 000 and 500 000 Source: OECD Metropolitan Database. Number of cities: 12 in Sweden and 1 138 in the OECD. In Sweden, 57% of the population lives in cities of more than 50 000 inhabitants. The share of population in cities with more than 500 000 people is 40% compared to 55% in the OECD area.

Importance of metropolitan areas Contribution of metropolitan areas to GDP growth Cities above 500 000 people, 2016 Cities above 500 000 people, 2000-16

% Sweden OECD average % Sweden OECD average 80 80 68% 70 63% 58% 70 60 55% 57% 47% 60 50 42% 40% 50 40 40

30 30 areas 20 20 10

10 327metropolitan 0 0 Stockholm % of national % of national % of national All metropolitan1 areas Largest contributor2 GDP employment population

The metropolitan areas in Sweden account for 47% of national GDP and 42% of employment. Between 2000 and 2016, the three Swedish metropolitan areas generated 57% of national GDP growth, with Stockholm alone being responsible for 42%. In terms of GDP per capita, the metropolitan area of Stockholm is among the richest 10% of the 327 OECD metropolitan areas. When considering PM 2.5 levels, the metropolitan areas of Stockholm and are in the 20% least polluted OECD metropolitan areas. OECD Metropolitan areas ranking Cities above 500 000 people, 2016

USD PPP 100 000 80 000 GDP per 60 000 40 000 capita, 2016 20 000 0 Top 20% richest Bottom 20% poorest metropolitan areas metropolitan areas Lev el of air pollution in PM 2.5 (µg/m³) 30 Air pollution 20 (PM2.5), 2017 10 0 Top 20% least polluted Bottom 20% most polluted metropolitan areas metropolitan areas

Source: OECD Metropolitan Database. Number of metropolitan areas with a population of over 500 000: three in Sweden compared to 327 in the OECD. * Note: Cities are defined here as functional urban areas, which are composed by high-density urban centres of at least 50 000 people and their areas of influence (commuting zone). For more information, see: http://www.oecd.org/cfe/regional-policy/functionalurbanareasbycountry.htm.

Updated the 5th of March 2019 Subnational government finance

Subnational government expenditure by function As a share of total subnational government expenditure, 2016

Sweden 00 OECD average

Health 27% 11 18% Health

Social protection 27% 22 14% Social protection

Education 21% 33 25% Education

General public services 11% 44 14% General public services

Other 8% 55 15% Other

Economic affairs 6% 66 14% Economic affairs

Subnational expenditure per capita: USD 12 238 77 USD 6 817

Subnational government expenditure amounts to USD 12 238 per capita in Sweden compared to an OECD average of USD 6 817. In Sweden, this is equivalent to 56% of total public expenditure and to 25% of GDP. In comparison, across the OECD, subnational government expenditure accounts for 40.4% of total public expenditure and for 16.2% of GDP. Health and social protection are the two largest spending items for subnational governments in Sweden. Together they represent 54% of subnational expenditure compared to 32% in the OECD area. Role of subnational governments in public investment Subnational government public investment per capita, 2016

USD per capita Sweden OECD average 2 500

2 000 Total public investment 1 500 USD 2 075 per capita 4.2% of GDP Total public investment USD 1 278 per capita 1 000 3.0% of GDP

Subnational government Subnational government 500 investment investment USD 1 044 per capita USD 727 per capita 0 50.3% of public invest. 56.9% of public invest.

In Sweden, 50.3% of total public investment was carried out by subnational governments (SNG) compared to an OECD average of 56.9%.

Source: OECD Subnational Government Structure and Finance Database. Note: The function ‘Other’ includes housing and community amenities, recreation, culture and religion; environment; public order and safety.

OECD Regions and Cities at a Glance 2018 The 2018 edition of OECD Regions and Cities at a Glance shows how regions and cities contribute to national growth and the well-being of societies. It updates its regular set of region-by-region indicators, examining a wide range of policies and trends and identifying those regions that are outperforming or lagging behind in their country. Consult this publication on line: https://oe.cd/pub/2n9

Updated the 5th of March 2019