Swedish economy

Sweden is today among the world’s richest and most technologically advanced nations. It has not always been this way: Sweden was a largely impoverished agrarian society until it was transformed into a center of heavy industry in the 19th and 20th centuries. Now the country has an impact on global business and industry far beyond its size, and companies with Swedish roots such as IKEA, H&M and Volvo are household names from Boston to Beijing.

Sweden’s transformation has been helped by several factors, including avoiding involvement in the 20th century’s many wars and the country’s long history of entrepreneurialism. Economists and politicians have long pointed to Sweden as a role model because of its successful combination of generous welfare benefits and high-tech capitalism. It constantly places near the top in international rankings of competitiveness, innovation and standard of living. Taxes are high, but the streets are clean.

The Swedish economy is built on rich reserves of iron ore and timber, and plentiful hydroelectric power. The main industrial sectors are forestry, telecoms, and the automotive and pharmaceutical industries. Today the country is among the world’s 15 richest in terms of GDP per capita, a status helped by high levels of education and a skilled workforce, excellent internal and external communications, and one of the highest levels of internet access.

Sweden is part of the European Union but maintains its own currency, the krona (crown). In 2003 Swedes voted in a referendum and chose not to join the euro. The country bounced back from the recent global financial crisis and subsequent recession more quickly and more strongly than many other industrialized nations, and foreign observers have noted its healthy public finances.