Through luck and well-placed geography, Sweden had the kind of natural resources (iron ore and wood) needed when countries like Britain and Germany industrialised. “The industrial revolution made the iron in our ground very important,” Waldenström told The Local. The last time Sweden took part in a war was 1814.
Sweden did not become wealthy through social democracy, big government and a large welfare state. It developed economically by adopting free-market policies in the late 19th century and early 20th century. It also benefited from positive cultural norms, including a strong work ethic and high levels of trust.
By the 1970s, Sweden had become one of the wealthiest nations of the world. The growth slowed down during the following decades, which were characterized by public deficits and structural change.
According to the World Bank, a key feature of the Swedish economy is its openness and liberal approach to trade and doing business. Sweden has traditionally been an export-orientated nation, and typically maintains a trade surplus, i.e. the value of goods and services it exports is greater than the value of imports.
Finland, Norway and Sweden had large forest resources, and, thus, timber and pulp and paper have been important export products. Sweden also has significant iron ore reserves, which brought wealth to the country even prior to modern industrialisation.
Of the Nordic countries, Sweden has had the highest at-risk-of-poverty rate from 2011 to 2020. In 2020, 16 percent of Sweden's population lived at risk of poverty. Since 2015, Norway, Denmark, and Finland all have similar at-risk-of-poverty rates, around 12 percent in 2020.
Gross domestic product
The Nordic countries are among the richest in the world measured in per capita GDP – significantly above the EU average. Norway is top of the Nordic ranking.
The economy of Sweden is a highly developed export-oriented economy, aided by timber, hydropower, and iron ore. These constitute the resource base of an economy oriented toward foreign trade.
One of the most notable aspects of Swedish culture is their respect for the environment and commitment to sustainability. They are a global leader in organic agriculture, recycling, and renewable energy.
So why is Sweden producing so many startups? It's an odd combination of high taxes, strong education, a supportive government, a tradition of creativity and collaboration (while also being oddly individualistic) and a strong safety net.
The Swedish tax code was substantially reformed in 1990 to be friendlier toward capital accumulation, with a flat rate on investment income. Sweden has no taxes on inheritance or residential property, and its 22 percent corporate income tax rate is far lower than America's 35 percent.
After Sweden intervened in 1630 with great success in the Thirty Years' War on the side of the German Protestants, and Gustav II Adolf became one of Europe's most powerful monarchs, Sweden defeated Denmark in the two wars of 1643–45 and 1657–58.
The beginning of the empire is usually taken as the reign of Gustavus Adolphus, who ascended the throne in 1611, and its end as the loss of territories in 1721 following the Great Northern War.
Meanwhile, back in the north, Sweden was invaded by its enemies; Charles returned home in 1714, too late to restore his lost empire and impoverished homeland; he died in 1718. In the subsequent peace treaties, the allied powers, joined by Russia and Great Britain-Hanover, ended Sweden's reign as a great power.
However, the are some internal differences: While Sweden has the highest gross domestic product (GDP) overall, Norway has the highest GDP per capita. All five Nordic countries are among the 20 countries in the world with the highest GDP per capita, showing just how economically successful the region is.
In 1995, Sweden became one of the first countries in the world to initiate a carbon tax. This excise tax is placed on carbon-intensive fuels such as oil and natural gas, and has heavily cut down Sweden's dependency on fossil fuels. Instituting a carbon tax is a cost-effective means of lessening CO2 emissions.
Each of these factors makes Sweden an outstanding place to live. Sweden performs well because of the country's focus on environmental issues, civic engagement, education, health and well-being, personal safety, and having a good work-life balance — themes common in Scandinavian countries.
Citizens' longevity is due in part to Sweden's commitment to environmental cleanliness. The water quality is satisfactory; 96 percent of those included in a poll approved of their country's drinking water. A lack of pollutants may also contribute to Sweden's higher-than-average life expectancy.
Swedish traits
A well-known national characteristic is the love of nature. Many Swedes like to spend their free time in the forest or by the sea. In Sweden nature is really available to everyone as there is a right of common access which applies to all forests, fields, beaches and lakes across the country.
Indeed, for high earners, income tax swallows up over half of their salary. But top earners in Sweden benefit not only from high levels of public services but also from the fact that several categories of tax simply don't exist in the Scandinavian nation.
The oil and gas industries play a dominant role in the Norwegian economy, providing a source of finance for the Norwegian welfare state through direct ownership of oil fields, dividends from its shares in Equinor, and licensure fees and taxes.
Östermalm. An extremely affluent area in Stockholm, Östermalm is where the wealthy live and socialise. The area has beautiful parks, leafy streets and stately buildings, and is home to some of the most upmarket shops, restaurants and bars in Stockholm.
Finland's key economic sector is manufacturing. The largest industries are electronics (21.6% - very old data), machinery, vehicles and other engineered metal products (21.1%), forest industry (13.1%), and chemicals (10.9%). Finland has timber and several mineral and freshwater resources.
Stefan Persson
This Swedish billionaire is the richest in the region, with a $13.5 billion net worth.
In percentage terms growth has been highest in Norway at 12.3%, followed by Iceland at 10% and Sweden, the country with the biggest population, at 9.7%.