Sweden is an export-oriented mixed economy featuring a modern distribution system, excellent internal and external communications, and a skilled labor force. Timber, hydropower and iron ore constitute the resource base of an economy heavily oriented toward foreign trade. Sweden's engineering sector accounts for 50% of output and exports. Telecommunications, the automotive industry and the pharmaceutical industries are also of great importance. Agriculture accounts for 2 percent of GDP and employment. The armaments industry has a technologically highly advanced reputation.
Based on the following passage regarding the economy of Sweden, what is the economic sector that accounts for the largest output?
According to this passage, the engineering sector accounts for the largest output, generating 50% of output and exports.