Once an agricultural nation, modern Sweden has capitalised on its extensive forests, rich iron ore deposits and hydroelectric power to become one of the world's leading producing and exporting nations. The country's population enjoys an enviably high standard of living, achieved through a mixed system of hightech capitalism and extensive welfare benefits.
Economy
Following a severe recession in the early 1990s, Sweden experienced a period of economic upswing, with growth rates regularly outpacing the European average. Compared with some major economies, Sweden's economic fundamentals are good with low deficits and well-funded pension programmes.
After GDP expanded by 4.1 per cent in 2006, growth slowed to 2.7 per cent in 2007. The economy had been expected to grow by 2.4 per cent in 2008, however the knock on effects of the slowdown hit the country harder than expected. As a result, the economy contracted by half a per cent.
A number of Swedish banks have been heavily exposed to the ailing Baltic economies and although they are expected to remain solvent, the economy is forecast to shrink by a further 5.3 per cent in 2009.
Investment Climate
Sweden is widely known as an attractive country in which to invest. Until the mid- 1980s, Sweden's approach to direct investment from abroad was quite restrictive and governed by a complex system of laws and regulations.
Since then, Sweden’s entry into the European Union (EU), as well as doubts about the effectiveness and desirability of controlling foreign direct investment (FDI), have greatly improved the investment climate and attracted foreign investors to the country.
Opportunities
For exports into Sweden, opportunities in the following sectors have been identified:
• Education – IT and educational material aimed at children with special needs
• Food and Drink – innovative and niche products; private label, new ethnic foods, health, organic and convenience food
• Renewable Energy – wind power and fuel cells technology
• eHealth – follow up systems to handle patient journals, IT portals for patients, health-coaching, process and implementation support, consumer driven healthcare and performance care systems
• Security – wireless systems for CCTVs and detectors
• Biotechnology
Automotive
Five large global automotive groups perform automotive research and development in Sweden, the car manufacturers Ford and GM as the owners of Volvo Cars and Saab Automobile, truck makers Volvo Trucks and Scania; and Autoliv, a leader in automotive safety.
The cluster has established a leading position in several important growth areas. Sweden is Ford's global R&D centre for safety, electronics, telematics and hybrid car technologies, and GM's global development hub for safety, telematics, hybrids, chassis systems and turbo engines. Volvo Trucks and Scania both have their principal R&D operations in Sweden. The automotive sector has been hit hard by the European slowdown.
UK Trading Relationship
In 2008, British exports to Sweden totalled £5 billion. Major UK exports to Sweden electrical machinery, telecom equipment, road vehicles and petroleum products.
In 2008, the UK took goods from Sweden worth £6.6 billion. Major UK imports from Sweden: paper, board and pulp, telecommunications equipment, road vehicles, cork and wood, iron and steel and general industrial machinery.
The widespread use of English together with Sweden’s familiarity with Britain ensures British companies are very welcome.
KEY FACTS
Official Name: Kingdom of Sweden
Capital: Stockholm
Area: 449,964 sq km
Population: 9.2m (UN, 2008)
Major language: Swedish
GDP (current): US$454.31bn (World Bank, 2007)
GDP growth: 2.7% (World Bank, 2007)
GNI per capita: US$46,060 (World Bank, 2007)
Inflation (consumer prices): 1.6% (2008 est.)
Labour force: 4.9m (2008 est.)
Unemployment: 6.4% (2008 est.)
Monetary unit: 1 Swedish krona = 100 ore
Exports to UK: £6,695.4m (HMRC 2008)
Imports from UK: £5,088.4m (HMRC 2008)
Main Industries
Iron and steel, precision equipment (bearings, radio and telephone parts, armaments), wood pulp and paper products, processed foods, motor vehicles.
Main Exports
Machinery, motor vehicles, paper products, iron and steel products, chemicals.
Main Imports
Machinery, petroleum and petroleum products, chemicals, motor vehicles, iron and steel, foodstuffs, clothing.
CONTACTS
UK Trade & Investment
Kingsgate House
66-74 Victoria Street
London SW1E 6SW
Tel: 020 7215 8000
Email: enquiries@uktradeinvest.gov.uk
Web: www.uktradeinvest.gov.uk
British Embassy
Skarpogatan 6-8
Box 27819SE-115 93
Stockholm
Tel: 00 46 8 671 3000
Email: info@britishembassy.se
Web: www.ukinsweden.fco.gov.uk/en
Embassy of Sweden
11 Montagu Place
London W1H 2AL
Tel: 020 7917 6400
Web: www.swedenabroad.com
