The Islamia University of Bahawalpur
International Business Management
Final Term Assignment
Submitted by:
Syeda Farza Khalid
Roll no: 07
Banking and Finance
BBA (8th Semester)
Submitted to:
Sir Rizwan Arshad
REPORT on SWEDEN
Introduction
Sweden, officially known as the Kingdom of Sweden, is a Scandinavian country located in
Northern Europe. The country has a population of approximately 10 million people, with its
capital city being Stockholm. Sweden is known for its natural beauty, with vast forests, lakes,
and coastal areas. It is also known for its high standard of living and strong welfare system,
which provides healthcare, education, and other social benefits to its citizens.
The country consistently ranks among the highest in the world in terms of quality of life, with its
citizens enjoying access to a wide range of social benefits. The Swedish welfare state provides
universal healthcare, education, and social security, as well as support for families and
individuals who are unemployed or facing financial difficulties.
Sweden has a highly skilled and educated workforce, with a strong emphasis on innovation and
entrepreneurship. The country has a vibrant startup scene, and is home to several major
companies in industries such as telecommunications, automotive manufacturing, and
pharmaceuticals. Sweden is also known for its focus on sustainability and environmentalism,
with a commitment to reducing its carbon footprint and promoting renewable energy.
The Swedish economy is diverse and robust, with a strong emphasis on exports. The country is a
major exporter of machinery, pharmaceuticals, and telecommunications equipment, and is also
known for its production of high-quality steel and timber products. Sweden is a member of the
European Union, but has chosen to retain its own currency, the Swedish krona.
In terms of culture, Sweden has a rich and diverse history, with contributions to the worlds of
music, art, and literature. The country is home to several world-renowned museums and
galleries, as well as festivals and cultural events throughout the year. The Swedish people are
known for their love of nature and the outdoors, with many engaging in activities such as hiking,
skiing, and ice skating.
The Swedish people are known for their love of nature and the outdoors, with many taking
advantage of the country's beautiful landscapes to engage in activities such as hiking, skiing, and
ice skating. The country has several national parks, including Abisko National Park and Sarek
National Park, which offer opportunities for hiking, camping, and wildlife viewing. Sweden is
also known for its winter sports.
Swedish cuisine is also an important aspect of the country's culture, with traditional dishes such
as meatballs, gravlax, and smörgåsbord being popular both in Sweden and abroad. The country is
also known for its fika culture, which involves taking a break to enjoy a cup of coffee and a
pastry with friends or colleagues.
Overall, Sweden is a country with a strong emphasis on quality of life, innovation, and
sustainability. Its commitment to social welfare and environmentalism, combined with its vibrant
economy and rich culture, make it a desirable place to live, work, and visit.
Sweden has a rich history, dating back to the Viking Age and the Middle Ages, when it was a
major political and economic power in Northern Europe. In the 17th century, Sweden emerged as
a major European power under the rule of King Gustavus Adolphus, and was involved in
numerous wars and conflicts during this period. In the 18th and 19th centuries, Sweden
underwent a period of industrialization and modernization, which led to the growth of its
economy and the development of its infrastructure. write more about this
During World War II, Sweden maintained its political and economic neutrality, which helped to
ensure its stability and prosperity in the post-war period. In the decades following the war,
Sweden experienced significant social and economic changes, with the expansion of its welfare
state and the growth of its industries.
Sweden's economy continued to grow throughout the 20th century, with the country becoming a
major player in the global economy. The 1960s and 1970s were a particularly transformative
period for Sweden, marked by the emergence of the Swedish Model, a system of government
and economic management that emphasized social welfare, progressive taxation, and
government intervention in the economy. The model helped to ensure a high standard of living
for Swedish citizens, and contributed to the country's strong economic growth and stability.
Overall, Sweden's history of industrialization, modernization, and economic growth has helped
to shape its current status as a prosperous and innovative country. Its commitment to social
welfare, progressive governance, and environmental sustainability has made it a model for other
countries around the world.
Economic condition
Sweden's economy is often considered one of the strongest and most stable in the world, with a
highly developed and diversified industrial base and a strong emphasis on exports. The country's
economic performance has been relatively stable in recent years, despite some challenges posed
by global economic volatility and other factors.
Sweden's economy has shown resilience and growth in recent years, with positive trends
continuing despite the challenges of the COVID-19 pandemic. In 2019, the country's GDP grew
by 1.2%, with a strong growth rate of 4.9% in the third quarter of the year. The unemployment
rate remained low, with an average of 6.8% for the year.
However, the pandemic had a significant impact on Sweden's economy in 2020, resulting in a
contraction of 2.8% in GDP for the year. The unemployment rate rose to an average of 8.4%,
with particularly high rates in the hospitality and tourism sectors.
As the country began to recover in 2021, the economy showed signs of improvement. GDP was
expected to grow by 4.8% for the year, according to the Swedish National Institute of Economic
Research. The unemployment rate remained at around 8%, although there were concerns about
certain sectors, such as hospitality and tourism, which were still experiencing challenges.
In terms of international trade, Sweden is a significant exporter, particularly in industries such as
machinery, vehicles, and pharmaceuticals. In 2019, the country's total exports amounted to
approximately 1.5 trillion SEK (about 169 billion USD), with a trade surplus of around 91 billion
SEK (about 10 billion USD). However, the pandemic impacted global trade, with a decline in
exports of 6.3% in 2020.
Overall, Sweden's economy has shown resilience in the face of challenges, with strong growth
rates in pre-pandemic years and a relatively quick recovery in 2021. However, the ongoing
impact of the pandemic on certain sectors, as well as external factors such as global trade, will
continue to be monitored in the coming years..
The COVID-19 pandemic hit Sweden's economy hard in 2020, leading to a contraction of 2.8%
in GDP and a rise in the unemployment rate to 8.4%. The country implemented measures such as
furlough schemes, subsidies for businesses, and loan guarantees to support the economy during
the pandemic. The government also increased spending on healthcare and provided financial
assistance to individuals and households affected by the pandemic..
The Swedish government implemented several measures to mitigate the economic impact of the
pandemic, including wage subsidies, loan guarantees, and support for small businesses. These
measures helped to stabilize the economy and prevent widespread job losses. One of the key
measures taken by the government was the introduction of a financial aid package for businesses
affected by the pandemic. The aid package included measures such as loans and grants to help
businesses cover fixed costs such as rent and salaries, as well as compensation for lost revenue.
In addition, the government introduced temporary tax relief measures to ease the financial
burden on businesses during the pandemic.
The government also introduced measures to support individuals who have been adversely
affected by the pandemic. These measures included an extension of sick pay for those who are
unable to work due to illness or quarantine, as well as financial assistance for those who have
lost their jobs or had their working hours reduced as a result of the pandemic.
Overall, the Swedish government's response to the COVID-19 pandemic has been
comprehensive and proactive. While the pandemic has had a significant impact on the economy,
the measures taken by the government have helped to mitigate some of the worst effects of the
crisis and provide support to those most in need.
Sweden's economy is highly dependent on exports, and the country has faced challenges due to
disruptions in global supply chains and reduced demand from key trading partners. However, the
country's strong technology and innovation sectors have helped to offset some of these
challenges, with companies such as Spotify and Ericsson continuing to perform well.Overall,
while Sweden's economy has been impacted by the COVID-19 pandemic,
Looking ahead to 2022 and 2023, Sweden's economic outlook remains positive, with a projected
GDP growth rate of 3.6% and 2.9% respectively, according to the European Commission's
forecasts. The country is expected to benefit from a recovery in global demand, particularly in
the export sector, and continued government support for the economy. However, there are still
uncertainties surrounding the pandemic and its impact on the global economy, which could affect
Sweden's economic performance.
Economic performance/development in last 10 years
Sweden is one of the Nordic countries located in northern Europe. The country has a highly
developed economy with a strong focus on innovation, technology, and sustainability. In this
report, we will analyze the economic performance and development of Sweden over the past
decade, from 2011 to 2020.
Gross Domestic Product (GDP)
According to the World Bank, Sweden's GDP grew at an average annual rate of 1.7% between
2011 and 2020. From 2011 to 2014, Sweden's economy showed a steady growth with a
consistent increase in GDP each year. In 2011, the GDP was 538.07 billion US dollars, which
grew to 571.11 billion US dollars in 2014. This period of growth was largely driven by Sweden's
strong exports sector and its reputation as an innovation-driven economy.
However, from 2015 to 2017, Sweden experienced a slight dip in GDP due to a slowdown in
global trade and economic uncertainty in Europe. In 2015, the GDP decreased to 494.12 billion
US dollars, but it began to slowly recover in the following years, reaching 538.38 billion US
dollars in 2017.
In 2018 and 2019, Sweden's GDP remained relatively stable, fluctuating around 538 billion US
dollars. However, in 2020, the COVID-19 pandemic hit the global economy hard, including
Sweden's. The country's GDP dropped to 498 billion US dollars, the lowest it had been since
2016.
Unemployment:
In 2011, Sweden's unemployment rate was 7.8%. This was a slight decrease from the previous
year, when the unemployment rate had been 8.4%. The country's economy was growing at the
time, and the government had implemented a number of measures to support job creation.
Over the next few years, Sweden's unemployment rate remained relatively stable, fluctuating
between 8% and 9%. In 2014, the unemployment rate reached a low of 7.8%, which was the
same as the rate in 2011. However, in the years that followed, the unemployment rate began to
rise again.
In 2015 and 2016, the unemployment rate increased to 8.4% and 8.9%, respectively. This was
partly due to a slowdown in global trade and a decrease in demand for Sweden's exports.
However, the unemployment rate began to decrease again in 2017 and 2018, reaching 6.8% and
6.4%, respectively.
In 2019, Sweden's unemployment rate remained relatively low at 6.8%. However, the COVID19 pandemic had a significant impact on the country's economy in 2020, causing the
unemployment rate to rise to 8.8%. This was the highest rate of unemployment in Sweden since
the early 1990s.
As of 2022, the unemployment rate in Sweden stands at around 7.2%, which is still higher than
the pre-pandemic levels but lower than the peak of 2020.
Trade:
Sweden is a highly trade-dependent country, with exports accounting for a significant portion of
its GDP. Here are some details about Sweden's trade from 2011 to 2022:
In 2011, Sweden's total exports amounted to around 1,200 billion SEK (Swedish Krona), with
the European Union (EU) being its largest trading partner. The country's main export products
included machinery, vehicles, chemicals, and electronic equipment.
Over the years, Sweden's export profile has remained relatively stable, with machinery and
vehicles continuing to be the country's largest export categories. However, there has been a
growing focus on high-tech products and services, with Swedish companies becoming
increasingly competitive in areas such as telecommunications, gaming, and life sciences.
Sweden has also been expanding its trade relations beyond the EU, with growing partnerships
with countries such as China and the United States. In recent years, there has been a growing
interest in Asia, with many Swedish companies establishing operations and partnerships in the
region.
In terms of imports, Sweden has a high level of dependence on imported goods, particularly
energy and raw materials. The country's main import partners are also from the EU, with
Germany and Norway being the top two import sources.
Sweden has also been actively involved in international trade agreements, such as the
Transatlantic Trade and Investment Partnership (TTIP) and the Comprehensive Economic and
Trade Agreement (CETA) between Canada and the EU. The country is also a member of the
World Trade Organization (WTO) and has been involved in negotiations for various trade
agreements.
Overall, Sweden's trade has remained strong over the years, with a growing focus on high-tech
products and services and a diversification of its trade partners beyond the EU. While there are
challenges posed by global economic uncertainties and geopolitical tensions, Sweden's trade
policies and partnerships have positioned the country as a competitive and innovative player in
the global market.
Social Welfare System:
Sweden is known for having one of the most extensive social welfare systems in the world. The
system is designed to provide its citizens with access to various social services, including
healthcare, education, unemployment benefits, pension, and child care.
From 2011 to 2022, Sweden's social welfare system has undergone several changes. One of the
significant changes was the introduction of a new pension system in 2011. The new pension
system, called the "premium pension," was designed to provide more choices for individuals and
encourage them to save more for retirement.
Another significant change was the introduction of a new education policy in 2011 that aimed to
make education more accessible to all individuals, regardless of their economic background. The
policy provided free education for all students, including those pursuing higher education.
Sweden's healthcare system has also undergone changes to improve access to healthcare
services. In 2015, a new healthcare act was introduced, which aimed to increase efficiency and
accessibility of healthcare services for all individuals.
Sweden's social welfare system has also been instrumental in providing support for unemployed
individuals. The unemployment benefit system is designed to provide financial support to those
who have lost their jobs, with the aim of helping them find new employment. In recent years,
there have been efforts to reform the unemployment benefit system to reduce the length of time
individuals receive benefits and encourage them to re-enter the workforce.
Green Economy:
Sweden has been a leading advocate for a green economy and sustainable development in the
world. The country has implemented several policies and initiatives to promote sustainable
practices and reduce carbon emissions. Here is an overview of Sweden's green economy from
2011 to 2020:

Renewable Energy: In 2011, Sweden had a target of generating 50% of its energy from
renewable sources by 2020. In 2019, the country surpassed its target and generated 54.6%
of its total energy from renewable sources. The main sources of renewable energy in
Sweden are hydropower, wind power, and biofuels.

Carbon Emissions: Sweden has set ambitious targets to reduce its carbon emissions. In
2011, the country had a target of reducing its emissions by 40% by 2020. In 2018,
Sweden's emissions were 25% lower than in 1990. The country has implemented several
measures to reduce its emissions, including a carbon tax, subsidies for electric cars, and
investments in renewable energy.

Green Transport: Sweden has made significant progress in promoting green transport. In
2011, the country had a target of reducing its transport emissions by 40% by 2020. In
2018, the transport sector's emissions were 2% lower than in 1990. The country has
promoted the use of electric cars and invested in public transport infrastructure.

Circular Economy: Sweden has implemented a circular economy strategy aimed at
reducing waste and promoting resource efficiency. In 2017, the country adopted a
national circular economy action plan that sets targets for reducing waste and increasing
the use of recycled materials.

Sustainable Agriculture: Sweden has implemented several policies to promote sustainable
agriculture, including subsidies for organic farming and measures to reduce the use of
pesticides. The country has also implemented a national food strategy aimed at promoting
sustainable food production and consumption.
Overall, Sweden has made significant progress in promoting a green economy and sustainable
development. The country has set ambitious targets and implemented several policies and
initiatives to reduce carbon emissions, promote renewable energy, and promote resource
efficiency.
Major Imports
Sweden is a highly developed country with a diversified economy. The country has a strong
international trade relationship, both in terms of imports and exports. The major imports of
Sweden include machinery, petroleum, vehicles, chemicals, textiles, food, and pharmaceuticals.
Machinery:
Sweden is known for its strong engineering industry and advanced technological capabilities. As
a result, machinery imports play a significant role in the country's economy. In 2020, Sweden
imported machinery and mechanical appliances worth a total of $19.6 billion USD.
The top categories of machinery imports to Sweden include electrical machinery and equipment,
mechanical appliances, and vehicles. In particular, Sweden has been importing a significant
amount of computers and computer accessories, as well as telecommunication equipment in
recent years.
The largest countries of origin for Sweden's machinery imports are Germany, China, the United
States, and Denmark. These countries account for a significant portion of Sweden's total
machinery imports, highlighting the importance of international trade relationships for the
country's economy.
Overall, Sweden's machinery imports reflect its position as a technologically advanced and
globally connected economy, with a strong emphasis on innovation and engineering.
Petroleum:
Sweden's petroleum imports have been gradually declining over the past decade due to a national
shift towards renewable energy sources and increasing emphasis on sustainability. In 2020,
Sweden imported petroleum products worth a total of $4.4 billion USD, a decrease from $7.3
billion USD in 2011.
The majority of Sweden's petroleum imports are refined petroleum products, including gasoline,
diesel, and fuel oils. These products are mainly used for transportation and heating purposes.
Sweden's crude oil imports are comparatively small, as the country only has one oil refinery that
primarily processes crude oil from the North Sea.
The largest countries of origin for Sweden's petroleum imports are the Netherlands, Russia, and
the United Kingdom. However, in recent years, Sweden has been reducing its dependence on
traditional oil sources and increasing its imports of renewable fuels and biofuels, primarily from
Norway and Denmark.
Sweden's decreasing reliance on petroleum imports reflects its commitment to reducing carbon
emissions and transitioning towards sustainable energy sources. The country has set ambitious
targets to achieve net-zero carbon emissions by 2045, and is actively investing in renewable
energy infrastructure to support this goal.
Vehicles:
Sweden is known for its automotive industry, and as such, vehicle imports are a significant
component of its overall imports. According to the World Bank, the total value of vehicle
imports into Sweden in 2020 was approximately 183.6 billion Swedish Krona (SEK) or around
$20.9 billion USD.
Sweden imports a variety of vehicles, including passenger cars, trucks, and buses. The largest
source of vehicle imports into Sweden is Germany, followed by the United States, Japan, and the
United Kingdom. In recent years, there has been a shift towards the import of electric and hybrid
vehicles in Sweden, as the country aims to reduce its carbon emissions and achieve its goal of
becoming carbon neutral by 2045.
Overall, vehicles are a significant component of Sweden's imports and play an important role in
the country's transportation infrastructure and economy.
Chemicals:
Sweden is a major importer of chemicals, with a significant share of its imports coming from the
European Union. According to the World Integrated Trade Solution, Sweden's chemical imports
increased steadily from $9.85 billion in 2011 to $16.1 billion in 2019. However, there was a
slight decline in 2020, with imports dropping to $14.4 billion due to the COVID-19 pandemic.
Sweden's main chemical imports include pharmaceuticals, plastics, and other organic chemicals.
The country also imports a significant amount of inorganic chemicals, including nitrogen
compounds, oxygen, and sulfur. Germany is the largest supplier of chemicals to Sweden,
followed by the Netherlands, Norway, and Belgium.
Sweden's chemical industry is one of the country's key manufacturing sectors, with companies
such as AstraZeneca, AkzoNobel, and Presortp having a significant presence in the market. The
industry has been focusing on sustainable practices and green chemistry in recent years, and
Sweden is home to several innovative companies in this field.
Textiles:
Sweden is a major importer of textiles, with a significant portion of its textile imports coming
from other European countries, such as Germany, Italy, and the Netherlands. The country also
imports textiles from Asian countries, particularly China and India.
In 2020, Sweden imported textiles and textile articles worth approximately 4.5 billion USD. This
was a decrease from the previous year, which saw imports worth 5 billion USD. The COVID-19
pandemic and associated restrictions on global trade contributed to the decrease in textile
imports.
The types of textiles imported by Sweden vary widely, including apparel, accessories, home
textiles, and technical textiles. The largest category of textile imports is apparel, which accounted
for 40% of Sweden's textile imports in 2020. Within the apparel category, the most imported
items were knitwear, followed by shirts and blouses, and then trousers.
The Swedish textile industry has been actively working to improve sustainability and reduce its
environmental impact. This has led to increased demand for sustainable and eco-friendly textiles,
which Sweden often sources from countries such as India, which has a growing industry for
organic and Fair-trade cotton.
In summary, Sweden is a major importer of textiles, with the majority of its imports coming from
European and Asian countries. The country has seen a recent trend towards more sustainable and
eco-friendly textiles.
Pharmaceuticals:
Sweden is a major importer of pharmaceutical products. In 2020, the total import value of
pharmaceuticals in Sweden was approximately 53.7 billion SEK (about 6.3 billion USD). The
country imports a wide range of pharmaceutical products, including medicines, vaccines,
medical devices, and other related products.
According to the Swedish National Board of Trade, the top five countries from which Sweden
imported pharmaceuticals in 2020 were:

Germany - accounting for approximately 25% of the total pharmaceutical imports to
Sweden.

Denmark - accounting for approximately 15% of the total pharmaceutical imports to
Sweden.

United States - accounting for approximately 9% of the total pharmaceutical imports to
Sweden.

Switzerland - accounting for approximately 8% of the total pharmaceutical imports to
Sweden.

United Kingdom - accounting for approximately 5% of the total pharmaceutical imports
to Sweden.
Food:
Sweden imports a significant amount of food products, including fruits, vegetables, meat, and
dairy. The country is known for its strict regulations on food safety and quality, and as a result,
many of its food imports come from countries with similar standards.
Some of the major food products that Sweden imports include:

Fruits and vegetables: Sweden imports a variety of fresh and processed fruits and
vegetables, including bananas, oranges, tomatoes, and potatoes. Many of these imports
come from Spain, the Netherlands, and other European countries.

Meat: Sweden imports various types of meat, including beef, pork, and poultry. Most of
these imports come from neighboring countries such as Denmark, Germany, and the
Netherlands.

Dairy products: Sweden imports a significant amount of dairy products, including cheese,
milk, and butter. Many of these imports come from Finland, Denmark, and Germany.
Major Exports
Sweden is a major exporter of various goods and services. Some of the country's major exports
include, Forest products, Iron and Steel , Metals and Minerals, Machinery and Equipments.
Forest Products:
Sweden is a country with a rich forest resource base, and as a result, forest products have been a
significant export for the country. The most important forest products that Sweden exports
include paper , sawn wood, pulp, and wood-based panels.
According to statistics from the Swedish Forest Agency, in 2020, the export value of Swedish
forest products was SEK 131 billion (approximately USD 15 billion). Paper and pulp products
accounted for the largest share of forest product exports, with a total export value of SEK 66
billion (approximately USD 7.6 billion). Sawn wood and wood-based panels were also important
exports, with a combined export value of SEK 40 billion (approximately USD 4.6 billion).
Sweden's forest product exports are mainly destined for other countries in Europe, with the
largest export markets being Germany, the United Kingdom, France, the Netherlands, and Italy.
However, there is also a growing market for Swedish forest products in Asia, particularly in
China and Japan.
In addition to providing an important source of export revenue, Sweden's forests also play a
crucial role in the country's economy, providing jobs, recreation opportunities, and
environmental benefits. Sweden has a long tradition of sustainable forest management, and the
country's forest policy is based on the principles of sustainable development and the wise use of
natural resources.
Iron and Steel:
Sweden is also a significant exporter of iron and steel products. According to the International
Trade Centre, in 2020, Sweden's iron and steel exports were valued at approximately USD 10
billion, making it the world's 12th largest exporter of iron and steel products.
Sweden's iron and steel exports are mainly composed of semi-finished products, such as iron and
steel bars, rods, and angles, as well as finished products, such as tubes and pipes. The country's
steel industry is centered around a few large companies, including SSAB, which is one of the
world's leading producers of high-strength steel.
Sweden's iron and steel exports are primarily destined for other European countries, with the
largest export markets being Germany, the Netherlands, and Belgium. However, the country also
exports significant amounts of iron and steel products to other parts of the world, including North
America and Asia.
In recent years, Sweden's iron and steel industry has faced some challenges, including increasing
competition from low-cost producers in other parts of the world. However, the industry remains
an important contributor to the country's economy, providing jobs and export revenue. The
Swedish government has also implemented policies to support the industry, including investment
in research and development and measures to promote sustainable production practices.
Metals and Minerals:
Sweden is also a significant exporter of metals and minerals. The country has a rich mineral
resource base, including iron ore, copper, gold, silver, and zinc, among others. In addition,
Sweden has a well-developed mining industry, with a number of large mining companies
operating in the country.
According to statistics from the Swedish Geological Survey, in 2020, Sweden's mineral exports
were valued at approximately SEK 51 billion (approximately USD 6 billion). The largest mineral
export category was iron ore, which accounted for around 57% of total mineral exports. Other
important mineral exports included copper, gold, and silver.
Sweden's mineral exports are primarily destined for other European countries, with the largest
export markets being Germany, the Netherlands, and Finland. However, there is also a growing
market for Swedish minerals in Asia, particularly in China and Japan.
Machinery and Equipments:
Sweden is also a significant exporter of machinery and equipment. The country has a welldeveloped manufacturing sector, with a particular strength in engineering and high-tech
industries. As a result, Sweden exports a wide range of machinery and equipment products,
including industrial machinery, telecommunications equipment, and medical equipment, among
others.
According to the International Trade Centre, in 2020, Sweden's machinery and equipment
exports were valued at approximately USD 23 billion, making it the world's 19th largest exporter
of machinery and equipment products. The largest export category was telecommunications
equipment, followed by industrial machinery and computers.
Sweden's machinery and equipment exports are primarily destined for other European countries,
with the largest export markets being Germany, Norway, and Denmark. However, there is also a
growing market for Swedish machinery and equipment in other parts of the world, including
North America and Asia.
Paper and Paperboard Products:
Sweden is a significant exporter of paper and paperboard products, including packaging
materials, printing paper, and tissue paper. According to the Swedish Forest Agency, in 2020,
Sweden's paper and paperboard exports were valued at approximately SEK 18 billion
(approximately USD 2.1 billion).
Sweden's paper and paperboard products are primarily exported to other European countries,
with the largest export markets being Germany, the United Kingdom, and France. However,
there is also a growing market for Swedish paper and paperboard products in Asia, particularly in
China and Japan.
The Swedish paper industry is characterized by its high level of technology and sustainability.
The industry uses renewable resources and is subject to strict environmental regulations. The
Swedish government has also implemented policies to support the industry, including investment
in research and development and measures to promote sustainable production practices.
Furniture:
Sweden is a significant exporter of furniture, particularly high-end and design-focused furniture.
According to the Swedish Furniture Industry Association, in 2020, Sweden's furniture exports
were valued at approximately SEK 14 billion (approximately USD 1.6 billion).
Swedish furniture products are known for their high-quality design and craftsmanship, as well as
their sustainability and use of natural materials. The largest export markets for Swedish furniture
are other European countries, particularly Germany, Norway, and Denmark. However, there is
also a growing market for Swedish furniture in other parts of the world, including North America
and Asia.
The Swedish furniture industry is characterized by its innovation and focus on sustainability. The
industry is subject to strict environmental regulations and has made significant efforts to reduce
its environmental impact. Additionally, the industry has implemented policies to promote social
responsibility, including fair labor practices and gender equality.
Telecommunication Equipments:
Sweden is a significant exporter of telecommunication equipment, particularly in the area of
mobile network technology. Companies such as Ericsson and Telia have a strong presence in the
global telecommunications industry and have helped to establish Sweden as a leader in this field.
In 2020, Sweden's telecommunications equipment exports were valued at approximately USD
7.5 billion, according to the International Trade Centre. The largest export markets for Swedish
telecommunications equipment are other European countries, particularly Germany and the
United Kingdom.
Swedish telecommunications equipment is known for its high quality and innovation. The
country has a strong focus on research and development in the field of mobile network
technology, and companies like Ericsson have been at the forefront of the development of 5G
technology.
Location Economies/competitive advantage
Sweden has several location economies and competitive advantages that make it an attractive
destination for businesses and investors. Here are some of the key factors:
Skilled Workforce:
Sweden's skilled workforce is one of its key competitive advantages. The country has a strong
education system that provides students with the skills and knowledge they need to succeed in a
wide range of fields.
The Swedish education system is based on a philosophy of "lifelong learning," which
emphasizes the importance of education and training throughout one's life. This approach has
helped to create a highly educated workforce, with a high percentage of the population having
completed tertiary education.
In addition to a strong education system, Sweden also has a culture of innovation and
entrepreneurship that encourages individuals to pursue their own ideas and start their own
businesses. This has helped to create a dynamic and innovative workforce that is able to adapt to
changing market conditions and new technologies.
Political Stability:
Sweden is known for its political stability, which is a key factor in its attractiveness to businesses
and investors. The country has a well-functioning democracy, a transparent legal system, and
low levels of corruption. Sweden has a parliamentary system of government, with a singlechamber parliament called the Riksdag. Elections are held every four years, and the government
is formed by the party or coalition of parties that can command a majority in the Riksdag. The
system is characterized by a high level of consensus-building and cooperation among political
parties, which helps to promote stability and continuity in government policy
Sweden also has a transparent legal system that is based on the rule of law. The country has a
well-developed judiciary, and the courts are independent and impartial. Another key factor in
Sweden's political stability is its low level of corruption. The country consistently ranks among
the least corrupt in the world according to the Corruption Perceptions Index. This is due in part
to the country's strong legal and regulatory framework, as well as a culture of transparency and
accountability in government and business.
Quality of Life:
Sweden is consistently ranked as one of the best countries in the world in terms of quality of life.
The country offers a high standard of living, a strong social welfare system, excellent healthcare,
and a high level of education.
One of the key factors in Sweden's high quality of life is its social welfare system. The country
has a comprehensive system of social benefits that provides support to all citizens, regardless of
income or social status. This includes universal healthcare, paid parental leave, and a generous
system of unemployment benefits. The social welfare system helps to ensure that all citizens
have access to basic necessities and a decent standard of living.
Infrastructure:
Sweden has a well-developed infrastructure, which includes modern transportation systems,
advanced telecommunications networks, and high-quality healthcare and education systems.
Transportation: Sweden has an extensive network of roads, highways, and railways that connect
major cities and towns. The country also has an efficient public transportation system, including
buses, trains, and subways. The Swedish government has invested heavily in infrastructure,
including the construction of new highways and railways, as well as upgrades to existing
infrastructure.
Telecommunications: Sweden has a highly advanced telecommunications network, which
includes broadband internet, mobile networks, and fiber-optic cables. The country is a leader in
5G technology, with several companies and organizations investing in research and development
in this area.
Healthcare: Sweden has a high-quality healthcare system, which provides universal coverage to
all citizens and residents. The system is funded through taxes and provides access to medical
care, including hospital stays, doctor visits, and prescription medications.
Recommendations for economic development/balance of trade
Sweden has a strong economy with a focus on innovation, technology, and sustainability.
However, the country faces challenges in achieving a balanced trade and reducing its reliance on
imported goods. Here are some recommendations for economic development and achieving a
better balance of trade in Sweden.
Promoting Export Driven Growth:
Promoting export-driven growth is an important step for Sweden to achieve a better balance of
trade and reduce its reliance on imported goods. Here are some specific strategies that Sweden
can use to promote export-driven growth:

Identify high-demand markets: Sweden should identify high-demand markets for its
goods and services, both within the European Union and in other regions around the
world. This can be done through market research and analysis, which can help identify
new export opportunities and target markets.

Support export-oriented companies: The Swedish government should provide support
and incentives for companies that are focused on exports. This can include tax breaks,
export credits, and subsidies for research and development. This will encourage
companies to invest in export-oriented production, which will help boost Sweden's export
capacity.

Expand export financing: Sweden should expand export financing options, such as export
credits and export guarantees, to help companies secure financing for export deals. This
will make it easier for companies to access the capital they need to expand their export
capacity and take advantage of new export opportunities.

Strengthen trade promotion: The Swedish government should strengthen its efforts to
promote Swedish goods and services in foreign markets. This can include participating in
trade shows and missions, hosting events to promote Swedish products, and partnering
with foreign distributors to increase the visibility of Swedish brands.
Encouraging Local Production:
Encouraging local production is another important step that Sweden can take to reduce its
reliance on imported goods and achieve a better balance of trade. Here are some specific
strategies that Sweden can use to encourage local production:

Provide incentives: The Swedish government should provide incentives for companies to
manufacture products locally. This can include tax breaks, subsidies, and grants that
make it more attractive for companies to invest in local production.

Support industry clusters: Sweden should support the development of industry clusters,
which are groups of companies that are located in the same geographic area and share
similar markets, technologies, and supply chains. This can help create synergies between
companies, promote knowledge sharing, and create a critical mass of skilled labor.

Foster collaboration between industry and academia: Sweden should foster collaboration
between industry and academia, which can help create new products and services and
promote innovation. This can be supported through research and development funding
and partnerships between universities and local businesses.
Encourage Entrepreneurship and Innovation:
Encouraging entrepreneurship and innovation is essential for promoting economic development
and achieving a better balance of trade in Sweden. Here are some specific strategies that Sweden
can use to encourage entrepreneurship and innovation:

Provide funding and support: The Swedish government can provide funding and support
for startups and small businesses. This can include grants, loans, and tax incentives for
companies that invest in innovation. The government can also provide training and
mentorship for entrepreneurs to help them develop their skills and business plans.

Create a supportive ecosystem: Sweden should create an ecosystem that supports
entrepreneurship and innovation, with access to affordable office space, high-speed
internet, and other resources that startups and small businesses need to succeed. The
government can also create policies that promote entrepreneurship, such as simplifying
business registration procedures, reducing bureaucratic hurdles, and offering legal advice
to startups.
Investing in Sustainable Infrastructure:
Investing in sustainable infrastructure is a key strategy that Sweden can use to promote economic
development, reduce its carbon footprint, and achieve a better balance of trade. Here are some
specific recommendations for how Sweden can invest in sustainable infrastructure:

Renewable energy: Sweden should invest in renewable energy systems, such as wind,
solar, and hydroelectric power. This can help reduce Sweden's reliance on fossil fuels and
promote the growth of the green energy sector. The government can provide funding and
incentives for companies that invest in renewable energy, as well as create policies that
promote the use of renewable energy sources.

Public transportation: Sweden should invest in public transportation networks that are
sustainable and efficient, such as electric buses and trains. This can help reduce traffic
congestion and air pollution, while also making it easier for people to commute to work
and travel within the country. The government can provide funding and incentives for
companies that invest in sustainable transportation, as well as create regulations that
promote the use of public transportation.

Waste management: Sweden should invest in sustainable waste management systems,
such as recycling and composting. This can help reduce the amount of waste that ends up
in landfills, while also creating new jobs and industries in the recycling and waste
management sectors. The government can provide funding and incentives for companies
that invest in sustainable waste management, as well as create regulations and policies
that promote recycling and composting.
In conclusion, Sweden has a strong economy with a focus on sustainability and innovation.
However, there is room for improvement in achieving a balanced trade and reducing reliance on
imported goods. By promoting export-driven growth, encouraging local production, investing in
sustainable infrastructure, supporting entrepreneurship and innovation, Sweden can achieve
economic development and a better balance of trade.