This bulletin examines the causes of the fertility decline in Sweden and the concerns and ambivalence of Swedes about zero population growth (ZPG). The fertility decline is attributed to many causes. In recent years there has been a drop in marriage rates and a sharp increase in non-marital cohabitation. The decline is also related to the increasing education and escalating employment rates among women. Other causes include the increased availability of effective contraception and legal abortion. If fertility remains below replacement at 1.8 births per woman and immigration balances emigration as now projected, the proportion of persons 65 and older will rise from 16 percent in 1977 to 20 percent of the population in 2025, higher than has been conjectured for a ZPG society. Financing retirement and medical benefits for the elderly already demands nearly half of the large total spent on social welfare and is escalating. Since World War II Sweden has welcomed refugees and until the 1970s encouraged immigration to fill labor needs. Integrating newcomers into the historically homogeneous society has caused problems despite conscientious policy efforts. Reducing immigration could mitigate these problems but could also mean an earlier and faster population decline than now projected. (Author/RM)