Mr Eklund, the bank economist in Stockholm, suggests that untaxed, unregulated work and smuggling now account for 5-10% of the total economy, though these activities involve natives as well as foreigners.

ECONOMIST: Is a large flow of migrants a good or a bad thing?

Some economists, such as Klas Eklund at Skandinaviska Enskilda Banken, argue that Sweden's economy is in step with Europe, that interest rates set by the European Central Bank would suit it, and that the country would gain from a stable currency, more trade, higher growth and bigger markets within the euro zone.

ECONOMIST: Relations with the EU are warming a little