SafekipediaEconomy of Sweden
Adapted from Wikipedia · Discoverer experience
Sweden has a strong and developed economy that focuses on selling goods and services to other countries. Important resources include timber, hydropower, and iron ore, which help power the economy. Key industries in Sweden include making motor vehicles, telecommunications equipment, pharmaceuticals, industrial machines, and many other products like home goods and appliances.
Traditionally, Sweden had a strong agricultural economy, but today it is known for engineering, steel, and pulp industries. Big companies such as Ericsson, ASEA/ABB, and SKF show how competitive Sweden is in the world market.
Sweden is a mixed economy where most businesses are privately owned but the government also plays a big role. The government provides many services and supports its citizens through a strong welfare state. Even though taxes are high, Sweden has achieved a very good standard of living because of its balance between advanced technology and good benefits for people.
History
Main article: Economic history of Sweden
In the 1800s, Sweden changed from a country where most people worked on farms to one that started building factories and cities. Many people were poor, so a lot of them moved to places like the United States to find better lives. During this time, Sweden made big changes to its money and banking systems. By the 1930s, Sweden had a very high standard of living, meaning people had a good quality of life. Sweden stayed out of both World Wars, which helped it grow even more because other countries needed its resources.
In the 1990s, Sweden faced a big economic problem. A lot of money was lost in real estate and banking, and many people lost their jobs. The government had to take over some banks and make changes to fix the economy. After that, Sweden made reforms to stay strong in the world economy.
| Year | GDP (in bn. US$PPP) | GDP per capita (in US$ PPP) | GDP (in bn. US$nominal) | GDP per capita (in US$ nominal) | GDP growth (real) | Inflation rate (in percent) | Unemployment (in percent) | Government debt (in % of GDP) |
|---|---|---|---|---|---|---|---|---|
| 1980 | 87.6 | 10,531.9 | 140.4 | 16,877.2 |  4.6% |  17.5% | 2.7% | n/a |
| 1981 | 100.2 | 12,044.3 |  128.1 | 15,396.7 | 4.5% | 12.1% | 3.4% | n/a |
| 1982 | 107.9 | 12,960.2 | 113.1 | 13,576.6 | 1.4% | 8.6% | 4.3% | n/a |
| 1983 | 114.5 | 13,739.8 | 103.9 | 12,470.9 | 2.1% | 8.9% | 4.8% | n/a |
| 1984 | 123.7 | 14,833.2 | 108.3 | 12,976.1 | 4.3% | 8.0% |  4.2% | n/a |
| 1985 | 130.6 | 15,629.1 | 113.2 | 13,549.5 | 2.3% | 7.4% | 3.9% | n/a |
| 1986 | 137.2 | 16,371.7 | 149.6 | 17,852.7 | 3.0% | 4.2% | 3.6% | n/a |
| 1987 | 145.3 | 17,263.6 | 182.0 | 21,629.3 | 3.3% | 4.2% | 2.9% | n/a |
| 1988 | 154.1 | 18,216.4 | 205.9 | 24,339.3 | 2.5% | 5.8% | 2.4% | n/a |
| 1989 | 164.4 | 19,278.6 | 216.7 | 25,412.2 | 2.7% | 6.4% | 2.0% | n/a |
| 1990 | 171.8 | 20,001.0 | 259.9 | 30,253.9 | 0.8% | 10.5% | 2.2% | n/a |
| 1991 | 175.7 | 20,322.8 | 272.2 | 31,490.2 | -1.1% | 8.8% | 4.0% | n/a |
| 1992 | 178.0 | 20,478.1 | 283.2 | 32,584.9 | -0.9% | 1.4% | 7.1% | n/a |
| 1993 | 178.9 | 20,455.1 | 213.0 | 24,351.1 | -1.8% | 4.7% | 11.2% | 65.7% |
| 1994 | 189.9 | 21,537.6 | 229.0 | 25,978.3 | 3.9% | 2.9% | 10.8% | 68.2% |
| 1995 | 201.5 | 22,799.9 | 267.3 | 30,246.9 | 3.9% | 2.5% | 10.4% | 68.3% |
| 1996 | 208.4 | 23,565.4 | 291.7 | 32,986.1 | 1.6% | 1.0% | 10.9% | 68.7% |
| 1997 | 218.5 | 24,699.1 | 268.1 | 30,307.2 | 3.1% | 1.8% | 10.9% | 67.4% |
| 1998 | 230.5 | 26,034.3 | 270.8 | 30,585.1 | 4.3% | 1.0% | 8.8% | 65.1% |
| 1999 | 243.7 | 27,500.4 | 274.1 | 30,928.6 | 4.2% | 0.6% | 7.6% | 60.1% |
| 2000 | 261.1 | 29,393.1 | 262.8 | 29,589.1 | 4.8% | 1.3% | 6.3% | 50.2% |
| 2001 | 270.8 | 30,400.8 | 242.4 | 27,207.5 | 1.4% | 2.7% | 5.8% | 51.8% |
| 2002 | 281.1 | 31,441.2 | 266.8 | 29,846.2 | 2.2% | 1.9% | 6.0% | 49.8% |
| 2003 | 293.3 | 32,674.8 | 334.3 | 37,249.3 | 2.3% | 2.3% | 6.6% | 49.3% |
| 2004 | 314.2 | 34,868.2 | 385.1 | 42,736.9 | 4.3% | 1.0% | 7.4% | 48.5% |
| 2005 | 333.3 | 36,841.1 | 392.2 | 43,349.9 | 2.9% | 0.8% | 7.8% | 48.8% |
| 2006 | 359.6 | 39,463.0 | 423.1 | 46,425.8 | 4.7% | 1.5% | 7.2% | 43.7% |
| 2007 | 382.1 | 41,605.3 | 491.3 | 53,496.5 | 3.4% | 1.7% | 6.3% | 39.0% |
| 2008 | 387.6 | 41,877.3 | 517.7 | 55,929.9 | -0.5% | 3.3% | 6.4% | 37.5% |
| 2009 | 373.2 | 39,952.7 | 436.5 | 46,734.9 | -4.3% | 1.9% | 8.5% | 40.7% |
| 2010 | 400.2 | 42,498.8 | 495.8 | 52,658.8 | 6.0% | 1.9% | 8.8% | 38.1% |
| 2011 | 421.5 | 44,450.3 | 574.1 | 60,540.2 | 3.2% | 1.4% | 8.0% | 37.1% |
| 2012 | 432.5 | 45,258.8 | 552.5 | 57,816.0 | -0.6% | 0.9% | 8.2% | 37.5% |
| 2013 | 444.6 | 46,098.8 | 586.8 | 60,845.0 | 1.2% | 0.4% |  8.2% | 40.2% |
| 2014 | 457.5 | 46,936.6 | 582.0 | 59,704.8 | 2.7% | 0.2% | 8.1% | 44.9% |
| 2015 | 481.3 | 48,857.9 | 505.1 | 51,274.3 | 4.5% | 0.7% | 7.6% | 43.7% |
| 2016 | 500.4 | 50,061.6 | 515.7 | 51,590.5 | 2.1% | 1.1% | 7.2% | 42.3% |
| 2017 | 530.4 | 52,413.1 | 541.0 | 53,459.1 | 2.6% | 1.9% | 6.9% | 40.7% |
| 2018 | 553.7 | 54,123.6 | 555.5 | 54,295.7 | 2.0% | 2.0% | 6.5% | 38.9% |
| 2019 | 574.8 | 55,656.2 | 533.9 | 51,694.5 | 2.0% | 1.7% | 7.0% | 34.9% |
| 2020 | 569.1 | 54,830.0 | 547.1 | 52,706.3 | -2.2% | 0.7% | 8.5% | 39.2% |
| 2021 | 622.8 | 59,587.3 | 635.7 | 60,815.5 | 5.1% | 2.7% | 8.8% | 36.8% |
| 2022 | 684.5 | 63,877.4 | 603.9 | 56,361.4 | 2.6% | 7.2% | 7.6% | 33.5% |
| 2023 | 707.9 | 65,459.2 | 654.0 | 60,473.0 | -0.1% | 8.4% | 7.4% | 31.2% |
| 2024 | 738.2 | 67,666.3 | 693.2 | 63,533.9 | 2.1% | 3.5% | 7.3% | 28.8% |
| 2025 | 769.4 | 69,935.3 | 732.6 | 66,594.4 | 2.3% | 2.3% | 7.2% | 26.9% |
| 2026 | 799.2 | 72,080.3 | 769.9 | 69,435.1 | 1.9% | 2.0% | 7.2% | 25.5% |
| 2027 | 830.7 | 74,376.1 | 808.7 | 72,405.1 | 2.0% | 2.0% | 7.2% | 24.2% |
Contemporary economy
Sweden has a mixed economy that focuses on selling goods and services to other countries. The country is rich in resources like timber, hydropower, and iron ore, which help support its industries. Major industries include making cars, telecommunications devices, medicines, machines, and many other products.
Many people in Sweden work, and a lot of them have gone to college or university. The country does well in making and selling things, and it has been growing strongly in recent years. Sweden also has its own money, called the Swedish krona, and its own bank that helps keep the economy stable.
Economic and monetary union
Main article: Sweden and the euro
Sweden's economy improved a lot after a tough time in the early 1990s. Because of this, Sweden could have joined a special group in Europe that uses the same money, called the euro. Although Sweden could join this group, the government decided not to use the euro when it started in 1999. They found a way to stay out without breaking any rules.
In 2003, Sweden asked its people to vote on whether to use the euro. Most people, about 56%, decided not to change to the euro. Today, there are no plans to ask people again soon, but some think it might happen in about ten years.
Unemployment
Sweden had very low unemployment in the 1980s, with rates around 2% or 3%. However, this changed during a big economic problem in the early 1990s, when unemployment rose above 8%. By 2000, the government aimed to lower unemployment to 4%, and they succeeded that year. They then set a new goal for 2004: for 80% of people aged to work to have regular jobs.
Even so, by August 2006, about 5% of working-age Swedes were still unemployed. Some people believe the real number is much higher, possibly around 20%, when considering those in government job programs, on long-term sick leave, or early retirement. In June 2013, official numbers showed 9.1% unemployment overall, and about 29% for young people aged 15 to 25.
Trade unions
In Sweden, about seventy percent of workers belong to trade unions. These unions work with special groups that represent employers, and they operate separately from the government and political parties. One big union group, called the National Swedish Confederation of Trade Unions, has strong ties to the Social Democrats, one of Sweden's main political parties.
Union membership is very high among both regular workers and professional workers. In 2023, most professional workers were in unions, more than regular workers. There are special union groups for professional workers, and they do not support any political parties or candidates in elections.
Sweden does not have laws that set a minimum wage. Instead, wages are decided through talks between unions and employers. Almost all workers have these talks, even though the government does not force them to happen for every industry. This shows how much the unions and employers handle things themselves instead of the government getting involved.
Labour force
In Sweden, wages have changed a bit over the years. Workers without special skills still earn good money, but those with education often earn less than in other countries like in Western Europe or the US. Recently, wages have gone up faster than usual because prices have stayed steady. In the year 2000, about 4.4 million people were working in Sweden.
Ongoing and finished privatisations
The Swedish government plans to sell some companies it owns. The money from these sales will help pay off debts and make things easier for future generations. The goal was to sell companies worth about SEK 200 billion between 2007 and 2010.
Ongoing privatisations
- Telia Sonera – telecom. The government used to own 45.3% but has sold some shares, now owning 37.3%.
- SAS Group – airline. The government owned 14.8% and sold some shares in October 2016. The Minister of Enterprise, Mikael Damberg, explained that the government shouldn’t own an airline long-term.
Completed privatisations
- OMX – stock exchange. Sold to Borse Dubai for 2.1 billion SEK.
- Vin & Sprit. Sold to Pernod Ricard for 5.6 billion Euro.
- Vasakronan. Sold to AP Fastigheter for 4.3 billion Euro.
- Nordea – bank. The government used to own 19.5% but sold the last shares in September 2013.
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