Germany Per cent (3 month moving average) 12 10 8 6 4 2 0 -2 -4 -6 1980  1985  1990  1995  2000  2005  Source: OECD  2. Relative unit labour cost Manufacturing industry, Index 1970 = 100 (3 month moving average) 120 110 100 90 80 70 60 50 1970  1975  1980  1985  1990  1995  2000  2005  Source: OECD  BIS Review 93/2006  5  3. GDP Annual percentage change 7 6 5 4 3 2 1 0 -1 -2 -3 1970  1975  1980  1985  1990  1995  2000  2005  Source: The Riksbank  4. Labour market 3 month moving average 4400  7,0  Unemployment, per cent of labour force (left hand scale) Employment, thousands (right hand scale) 6,0  4300  5,0  4200  4,0 2000  4100 2001  2002  2003  2004  2005  2006  Sources: Statistics Sweden and the Riksbank  6  BIS Review 93/2006  5. Current account and public finances Percentage of GDP (3 year moving average) 8  8  Public financial saving Current account  6  6  4  4  2  2  0  0  -2  -2  -4  -4  -6  -6  -8  -8  -10 1980  1985  1990  1995  -10 2005  2000  Sources: OECD and the Riksbank  6.
For example, the unexpectedly strong productivity growth, combined with moderate wage increases, has contributed to inflation being below target in recent years. Wage formation will remain a focal point in the monetary policy analyses, particularly next year when the majority of the collective wage agreements are due to be renegotiated. The level of capacity utilisation and the impact it has on wage formation are also important and topical issues. The OECD calculates what is known as the GDP gap. Their interpretation is that capacity utilisation in the Swedish economy is already higher this year than is compatible with a low and stable inflation rate. However, calculating the GDP gap and similar measures is a very uncertain process. Nor are the measures stable; they change over time. The National Institute of Economic Research (NIER) calculates the labour market gap and equilibrium unemployment. The calculation in the most recent wage formation report shows the labour market gap as being close to zero in 2007 and then becoming slightly positive in 2008 and 2009. Equilibrium unemployment is calculated at 4.5 per cent; it is predicted that this level will be reached next year and that open unemployment will thereafter be slightly below equilibrium level. However, according to the NIER, the social partners have the possibility in the central wage negotiations next year to choose different alternative actions that could either reduce or increase equilibrium unemployment.