This 2008 Article IV Consultation highlights that Sweden's economy has performed well, but is sensitive to global demand. The activity is now moderating. Exports have benefited from sound competitiveness, but euro area and U.S. slowing is causing them to decelerate. Private consumption growth has been relatively smooth, as employment and wages have picked up, and disposable income further benefited from tax cuts. Employment growth reached 2 percent, and the unemployment rate declined from 8 percent in 2005 to 6 percent in early 2008.