Economy in Sweden

Overview

Capital: Stockholm
Official EU language(s): Swedish
EU member country: since 1 January 1995
Currency: Swedish krona (SEK). Sweden has not adopted the euro.
Schengen: Sweden has been a member of the Schengen area since 25 March 2001.

Figures: Geographical size – population – gross domestic product (GDP) per capita in PPS

Political system

Sweden operates as a parliamentary democracy and constitutional monarchy. Executive power is exercised by the government, led by the prime minister, while the monarch serves as head of state with largely ceremonial and representative functions. Legislative authority rests with a single-chamber parliament elected by proportional representation. Sweden is a unitary state, administratively divided into counties and municipalities that enjoy a high degree of local self-government, particularly in areas such as healthcare, education, and regional development.

Trade and economy

In 2020, Sweden’s economy was driven primarily by public administration, education, healthcare, and social services, reflecting the country’s well-developed welfare system. Wholesale and retail trade, transport, accommodation, and food services also accounted for a significant share of economic activity. Industry remains a central pillar of the Swedish economy, with strong international competitiveness in sectors such as automotive, machinery, telecommunications, pharmaceuticals, clean technologies, and advanced manufacturing.

Sweden’s trade is strongly export-oriented and closely integrated with the European single market. Within the EU, Sweden’s main export destinations include Germany, the Netherlands, and neighboring Nordic countries. Outside the EU, the United States and the United Kingdom are among Sweden’s most important trading partners. Imports similarly originate largely from EU member states, complemented by substantial trade flows from global partners such as China and the United States.

Sweden in the EU

European Parliament
Sweden is represented by 21 members in the European Parliament.

Council of the EU
Swedish government representatives participate regularly in Council meetings to adopt EU legislation and coordinate policies across all major policy areas.

Presidency of the Council of the EU
Sweden has held the rotating Presidency of the Council of the EU on several occasions, most recently from January to June 2023.

European Commission
Sweden is represented in the European Commission by its nominated Commissioner, contributing to the Commission’s work across key EU policy areas.

European Economic & Social Committee
Sweden has 12 representatives on the European Economic and Social Committee, providing input on proposed EU legislation affecting economic and social matters.

European Committee of the Regions
Sweden is also represented by 12 members on the European Committee of the Regions, ensuring that regional and local perspectives are taken into account in EU policymaking.

Permanent representation to the EU
Sweden maintains a permanent representation in Brussels, which serves as the main channel for coordination with EU institutions and the advancement of national interests.

Budgets and Funding

Sweden’s contributions to the EU budget are calculated in line with its economic capacity. These contributions support a wide range of EU-funded programmes and projects across all member states, with a strong focus on innovation, sustainability, social cohesion, and economic development for the benefit of Europeans as a whole.