Sweden Economic Outlook
A diversified and export-oriented economy:
Sweden is one of Europe’s most industrialized economies, with key sectors including manufacturing, technology, and finance. Major Swedish companies such as Volvo, Ericsson, and IKEA have a strong global presence, contributing to Sweden’s status as a major exporter. The country’s highly developed infrastructure and skilled workforce make it an attractive destination for investment.
Innovation and green technology leadership:Sweden is at the forefront of technological innovation, particularly in green energy, automation, and digital services. The government has prioritized investments in sustainability, making Sweden one of the world's leaders in clean energy and climate initiatives. The country’s startup ecosystem is also thriving, with Stockholm known as a major hub for fintech and tech startups.
Economic challenges and inflation risks:While Sweden has a strong economic foundation, it faces challenges such as rising interest rates, inflation, and housing market imbalances. The country’s real estate sector has experienced significant price increases in recent years, raising concerns about potential market corrections. Additionally, Sweden's high tax rates, while supporting a strong welfare system, can be a deterrent for certain businesses and investors.
Sweden’s economic outlook:Sweden’s economy is expected to grow steadily, driven by innovation, exports, and sustainable investments. However, managing inflation, housing market risks, and global trade disruptions will be key challenges. Maintaining its competitive edge in green technology and digitalization will be crucial for long-term economic success.
Sweden's Macroeconomic Analysis:
Nominal GDP of USD 610 billion in 2024.
Nominal GDP of USD 585 billion in 2023.
Nominal GDP of USD 610 billion in 2024.
GDP per capita of USD 57,295 compared to the global average of USD 10,589.
GDP per capita of USD 55,440 compared to the global average of USD 10,589.
GDP per capita of USD 57,604 compared to the global average of USD 10,589.
Average real GDP growth of 1.9% over the last decade.
Average real GDP growth of 2% over the last decade.
Average real GDP growth of 1.9% over the last decade.
Sector Analysis
In 2022, services accounted for 65.3% of overall GDP, manufacturing 13.1%, other industrial activity 20.0%, and agriculture 1.6%. Looking at GDP by expenditure, private consumption accounted for 43.2% of GDP in 2023, government consumption 25.7%, fixed investment 26.8%, and net exports 4.3%.International trade
In 2023, manufactured products made up 72.1% of total merchandise exports, mineral fuels 7.5%, food 6.8%, ores and metals 5.2% and agricultural raw materials 3.6%, with other categories accounting for 4.8% of the total. In the same period, manufactured products made up 68.8% of total merchandise imports, mineral fuels 11.2%, food 10.9%, ores and metals 3.2% and agricultural raw materials 1.1%, with other goods accounting for 4.8% of the total. Total exports were worth USD 222 billion in 2024, while total imports were USD 184.50 billion.Main Economic Indicators
Economic growthThe economy recorded average annual growth of 1.9% in the decade to 2024. To read more about GDP growth in Sweden, go to our dedicated page.
Fiscal policy
Sweden's fiscal deficit averaged 0.3% of GDP in the decade to 2023. Find out more on our dedicated page.
Unemployment
The unemployment rate averaged 7.6% in the decade to 2024. For more information on Sweden's unemployment click here.
Inflation
Inflation averaged 2.6% in the decade to 2024. Go to our Sweden inflation page for extra insight.
Monetary Policy
Sweden's monetary policy rate ended 2024 at 2.75%, up from 0.00% a decade earlier. See our Sweden monetary policy page for additional details.
Exchange Rate
From end-2014 to end-2024 the krona weakened by 29.1% vs the U.S. dollar. For more info on the krona, click here.
Economic situation in Sweden
A second national accounts release showed Q1’s stagnation in GDP was in fact a quarter-on-quarter contraction; fixed investment and private spending declined. Still, the downturn was cushioned by export front-loading ahead of U.S. tariffs and higher defense spending. Turning to Q2, the economy should have rebounded—albeit mildly. GDP expanded 0.4% in April on a seasonally adjusted monthly basis (Q1: -0.2% qoq s.a.), likely benefiting from healthier household spending; retail sales recorded the best monthly rise of 2025 in April. Moreover, industrial production rebounded in the month on surging mining activity. Still, goods exports fell in April and May as the fall-out from U.S. tariffs hurt the export-reliant economy. Moreover, high unemployment and trade uncertainty will have capped investment and spending as both consumers and investors remain cautious.Sweden Economic Forecasts
Projections out to 2034.42 indicators covered including both annual and quarterly frequencies.
Consensus Forecasts based on a panel of 30 expert analysts.
Want to get insight on the economic outlook for Sweden in the coming years? FocusEconomics collects projections out to 2034 on 42 economic indicators for Sweden from a panel of 30 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts, and averaged to provide one Consensus Forecast you can rely on for each indicator. This means you avoid the risk of relying on out of date, biased or outlier forecasts. Our Consensus Forecasts can be visualized in whichever way best suits your needs, including via interactive online dashboards , direct data delivery and executive-style reports which combine analysts' projections with timely written analysis from our in-house team of economists on the latest developments in the Sweden economy. To download a sample report on the Sweden's economy, click here. To get in touch with our team for more information, fill in the form at the bottom of this page.