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Successfully investing in Sweden

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​​​​​​​​last updated on 6 October 2025 | reading time approx. 4 minutes

 

    

 

How do you assess the current economic situation in Sweden?

The Swedish economy is currently experiencing mixed development. Following a recession last year, a slight recovery in real GDP growth of 0.22 percent is forecast for 2024. The inflation rate has stabilized at 2.1 percent, below the EU average of 2.60 percent. The key interest rate is currently at 3.5 percent, with possible further reductions in the offing. A more expansionary monetary policy is expected. The Swedish krona has appreciated slightly against the euro and the US dollar since the beginning of 2025, but remains weak by historical standards.

  

How would you describe the investment climate in Sweden? Which sectors offer the largest potential?

Sweden offers an attractive investment climate with a stable economy, high levels of innovation, and a strong infrastructure. The country particularly attracts knowledge-based and high-tech companies, which benefit from its technological maturity and the quality of its business environment. The government is pursuing a strategy to strengthen competitiveness and promote trade, investment, and innovation. Investments in digitalization, green tech, and sustainability, such as the expansion of wind farms and the promotion of climate-friendly technologies, are particularly in demand.

    

What challenges do German companies face during their business venture into Sweden?

German entrepreneurs wishing to operate in Sweden may encounter the following challenges:

Regulatory differences: Sweden has its own legal and tax framework, which differs from Germany. Labor law and corporate taxation, in particular, require careful planning.
Cultural differences: Swedish business culture is strongly characterized by consensus and flat hierarchies. Decisions are often made collaboratively, which can be a challenge for German entrepreneurs.

Market access & competition: While the Swedish market is open, it is also highly competitive. Local companies often have a competitive advantage through established networks and brand awareness.

Language & communication: Although many Swedes speak English very well, it can be advantageous to have knowledge of Swedish to deepen business relationships and build trust.
Despite these challenges, Sweden offers a stable and innovation-friendly business environment.

    

Why is Sweden one of the happiest countries in the world?​

Sweden ranks 4th in the 2025 World Happiness Report. The Nordic countries continue to dominate the rankings, with Finland in first place, followed by Denmark and Iceland. Sweden particularly scores highly for its social security, high quality of life, and strong community.

  • Social security: The Swedish welfare system offers comprehensive social protection, including free healthcare, paid parental leave, and generous pension benefits
  • Work-life balance: Flexible working hours and long vacation periods allow people to enjoy a good work-life balance.
  • Connectivity to nature: Sweden boasts stunning natural beauty with easily accessible forests, lakes, and coastlines that promote well-being.
  • Cultural traditions: Swedes cultivate relaxed social habits such as "fika" – a coffee break with friends or colleagues that strengthens a sense of community.
  • Equality: The country places a strong emphasis on social justice and equality, which contributes to a harmonious and inclusive society.

These factors, among others, contribute to Sweden consistently ranking high in international happiness rankings.

   

In your opinion, how will Sweden develop?

In 2025, Sweden is expected to experience moderate economic. However, challenges remain, particularly due to the unpredictable US trade policy, which poses risks to Sweden's export economy. In the long term, growth is expected to slow down slightly.
Sweden remains an export-oriented economy with strong sectors in technology, services, and industry. Germany remains one of the country's most important trading partners.​

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