Sweden, with a GDP of $586 billion (2022) and a population of 10.5 million, is the largest Nordic economy and boasts a transparent, highly developed, sophisticated and diversified market with few barriers to entry.  Sweden ranks among top 10 worldwide on several competitiveness studies (WEF, IMD).  This is due in part to Sweden’s export-oriented manufacturing sector, competitive small and medium-sized enterprises, and budgetary discipline.  Sweden also consistently ranks high for its connectivity, governance, investment in R&D, and business climate.  As such, many foreign firms establish operations in Sweden when looking to enter or expand into the Nordics and/or the Baltics.

In 2022, U.S. merchandise exports to Sweden were valued at $7.6 billion and imports were $17.5 billion, generating a trade deficit of $9.9 billion.  The U.S. exported $4.95 billion in services to Sweden in 2020 and imported $2.97 billion, generating a trade surplus of $1.98 billion.  Major categories of U.S. exports to Sweden include aerospace/defense, automotive aftermarket, telecommunications equipment, healthcare/life sciences, information technologies, safety/security, clean-tech, industrial machines, and renewable energy. 

The pandemic had a strong impact on the Swedish economy, but following several fiscal stimulus packages, a successful vaccination rollout, and a relaxation of pandemic-related restrictions, Sweden’ economy has recovered fully to pre-pandemic levels with no notable impact on the investment climate.   

Political Environment

Visit State Department’s website for background on Sweden’s political and economic environment.