Sweden
The 3rd largest country in the EU. Sweden enriched the world with IKEA, Volvo, Spotify or ABBA.
Total area: 450,295 sq km (roughly the size of California)
Population: 10.5 million
Government type: Constitutional monarchy with a parliamentary system
Administrative division: 21 counties (called “län”)
Capital + other major cities: Stockholm (989,000) + Göteborg (604,000), Malmö (362,000), Uppsala (245,000)
Currency: Swedish krona (SEK)
Language: Swedish (official) + 5 official minority languages: Sami, Finnish, Meänkieli (Tornedalen Finnish), Yiddish and Romani Chib
Ethnicity: Swedish 79.6%, Syrian 1.9%, Iraqi 1.4%, Finnish 1.3%, other 15.8% (2022 est.)
Religion: Lutheran (54%), other (9%), none or unspecified (37%)
King: Carl XVI Gustaf
Prime Minister: (Mr.) Ulf Kristersson (since 2022)
Date of EU accession: 1995
KEY FEATURES
- Joined NATO in 2024 after the Russian invasion of Ukraine (the country has not been involved in any war for 200 years)
- Most forested country in Europe (69% of its land area)
- 6th least corrupt country in the world
- Most of the population lives in the south
- High immigration rate
- Welfare state with high gender equality
- R&D expenditure is the second-highest in the EU (3.4% of GDP)
- Leader in new ICT technologies
- AAA credit ranking country
- Aims to achieve carbon neutrality by 2045
MACROECONOMIC OVERVIEW
Selected economic indicators, Sweden, 2017 - 2023
| 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | ||
| GDP |
|
|
|
|
|
|
|
|
| Real GDP growth |
%
|
1.8 | 1.9 | 2.5 | -2.0 | 5.9 | 1.5 | -0.2 |
| GDP at current prices |
€ bn
|
475.6 | 467.1 | 475.3 | 478.8 | 538.6 | 551.7 | 540.6 |
| Foreign trade |
|
|
|
|
|
|
|
|
| Exports |
€ bn
|
208.7 | 214.3 | 229.3 | 211.9 | 254.7 | 297.3 | 298.3 |
| Imports |
€ bn
|
199.9 | 206.6 | 210.4 | 191.8 | 231.4 | 286.7 | 276.7 |
| Balance |
€ bn
|
8.8 | 7.7 | 18.9 | 20.1 | 23.3 | 10.6 | 21.6 |
| Prices |
|
|
|
|
|
|
|
|
| CPI – average inflation rate |
%
|
1.9 | 2.0 | 1.7 | 0.7 | 2.7 | 8.1 | 5.9 |
| PPI – industry – average |
%
|
4.0 | 5.5 | 2.7 | -2.3 | 11.0 | 20.3 | -3.2 |
| Employment |
|
|
|
|
|
|
|
|
| Registered unemployment |
%
|
6.8 | 6.5 | 7.0 | 8.5 | 8.9 | 7.5 | 7.7 |
| Average monthly gross wage |
€
|
3,510 | 3,392 | 3,362 | 3,471 | 3,673 | 3,613 | |
| Exchange rates* |
|
|
|
|
|
|
|
|
| USD/SEK average (SEK per USD) |
|
8.5 | 8.7 | 9.4 | 9.2 | 8.5 | 10.1 | 10.6 |
| EUR/SEK average |
|
9.6 | 10.2 | 10.5 | 10.4 | 10.1 | 10.6 | 11.4 |
Source: Statistics Sweden, IMF, OECD, World Bank, Eurostat, ECB, 2017-2023
* For the current exchange rate, please see www.xe.com
KEY SECTORS
The country has a strong industrial sector, which accounts for 31.6% of GDP. Key sectors include the automotive industry and manufacturing, and new ICT and digital technologies have been gaining importance and are becoming significant within the Swedish economy. Sweden has some of the largest iron ore reserves in Europe, with the Kiruna and Malmberget mines being among the most notable. Iron ore is a crucial export commodity for Sweden.
Automotive Industry
The automotive sector is a vital part of the Swedish economy, with major companies such as Volvo and Scania playing key roles in truck, bus, and passenger car production. The luxury car manufacturer Volvo Cars is also a significant player in this industry. Recently, Northvolt opened a battery gigafactory in northern Sweden, becoming the European leader in battery production. The Swedish automotive industry accounts for more than 13% of manufacturing jobs and employs over 80,000 people. Sweden ranks fourth in EU bus production with an annual output of 3,800 vehicles.
Manufacturing
Sweden is known for its manufacturing industries such as engineering, eletronics and metal products. Industrial technologies and engineering are the backbone of the sector and many companies have gained a global reputation (ABB, Assa Abloy, Ericsson, Husquarna, etc.). Manufacturing accounts approximately for one third of all exports.
Technology
Sweden is a global leader in telecommunications and technology. The country has a strong focus on innovation and digital services, and the ICT sector accounts for 22% of the country’s GDP output. Stockholm is the Nordic hub for start-ups with a large number of “unicorns”, second only to Silicon Valley. The gaming industry also plays a crucial role generating annual sales of EUR 2.8 billion.
Pharmaceutical and Biotech
Sweden has a well-established pharmaceutical and biotechnology sector with around 1,000 companies focused on Life Sciences, located primarily in the Stockholm and Uppsala region. Strong scientific research and collaboration between government, universities, and the private sector have made Sweden a key player in this field.
Forestry and Paper Products
Given Sweden's extensive forest resources, the forestry and paper industry is significant. Sweden is one of the largest producers of timber in Europe and its furniture industry is well represented by the world’s leading furniture brand IKEA.
Defense industry
Sweden has a strong domestic production of defense equipment and in many sectors is self-sufficient in production, raw materials and design. It is the 13th-largest arms exporter in the world. The most important defense companies are, for example, Saab AB with its Gripen fighter jets, submarines, radars and electronic warfare systems closely followed by BAE System AB (Combat Vehicle 90). The industry is recognized for its cutting-edge technology, high R&D and innovative approaches and employs more than 30,000 people.
EXPORTS & IMPORTS
Sweden is an export-oriented country with a GDP/Export ratio of 55%. Its closest trade links are with Germany and neighboring Norway.
2023 export and import data:
Main import partners:
Germany – 16.7%
Netherlands – 10.7%
Norway – 10.3%
Denmark – 6.4%
China – 5.7%
Main export partners:
Germany – 10.3%
Norway – 9.2%
USA – 8.6%
Denmark – 7%
Finland – 6.9%
Netherlands – 5.4%
Market Research in Sweden
EasyLink provides professional expertise in strategic market research, market intelligence, competitive intelligence, market size analysis and market potential evaluation, competitive landscape and distribution structure study, identification of new customers and potential partners etc. Please contact us to discuss how we can assist your business objectives in export, marketing or sourcing.
Customer Search & Partner Search in Sweden
We are experienced experts in matchmaking projects involving the search, identification, screening and pre-selection of business partners in Europe, ranging from distributor search to profiling of prospective customers and identifying specific business opportunities; we assist our clients with sourcing in emerging markets and low-cost markets in the region.
International Trade Consultancy – Export, Marketing and Trade Promotion in Sweden and Scandinavia
EasyLink has a unique track record in international trade promotion. With local consultants in all key markets in Central & Eastern Europe, EU markets and some overseas markets, we provide customized market research, develop trade opportunities with prospective partners and new customers, and assist clients with strategic advice for their export, marketing and sourcing needs.