The Nordics and Sweden

Sweden was recently ranked as the world’s most reputable country and as a country it has become synonymous with openness and creativity. The Nordic nations (Sweden, Denmark, Finland and Norway) occupy the top four positions of the best European countries for business in 2020, according to EuCham. Sweden is the largest market in the Nordics and together the Nordic nations – Sweden, Denmark, Norway, Finland and Iceland, as well as their autonomous regions – make up the 12th largest economy in the world.

Four of the Nordic countries – Sweden, Denmark, Norway and Finland - are not simply a group of nations with a combined population of 27 million people. These four are also more competitive than most other countries in the world when it comes to economic growth, stable business environments and thriving living conditions.

The Nordic markets, and especially Sweden, by far the most populous of the Nordic countries, have shown strong development in recent years. Being amongst the least-populated areas in Europe, whilst at the same time having both an increasing population and rising GDP, indicates great potential for continued economic growth. Sweden has the largest market of all the Nordic nations and due to conditions of low sovereign debt, transparent economics and a well-consolidated banking system it boasts a combination of stability and growth potential.

All Nordic countries have a GDP above the European average. While Norway stands out, with a slightly higher GDP, largely due to its abundance of oil, it is also the most expensive Nordic country to live in. Conversely, the Norwegians flock to Sweden to shop. Sweden on the other hand has for a long time scored the highest in Eurostat’s retail turnover index, an indicator for domestic demand. As a part of the EU, Sweden also offers a smart entry point to the greater European market.

Most Swedes live in urban areas where, from an international perspective, purchasing power is high. Swedes also have the second best non-native English skills in the world, making these urban areas of growing interest among international companies, workers and students. This development is enhanced by a high standard of living thanks to high-quality free education and free health care, as well as the most generous parental leave in the world, with 480 days of paid parental leave.

Despite its relatively small population, Sweden consistently ranks as one of the most competitive, productive and globalised countries in the world.

Sweden has the biggest population and the largest retail market of the Nordic nations. Being geographically in the centre of the Nordic countries, Sweden is also notable for its strategic location. With the highest level of retail attractiveness, it is no surprise that international retailers continue to expand their business ventures, company headquarters and logistics centres to Sweden. Moreover, several sectors of the Swedish market, such as furniture & decorations and children’s toys, remain somewhat unexplored by international actors, indicating that there is still room for investment.

Sweden’s population is 10.3 million and due to net immigration, increasing birth rates and lower mortality, the country has enjoyed steady population growth over a long time, especially in urban areas. The trend is only expected to continue, particularly in the largest cities – Stockholm, Gothenburg and Malmö – where the majority of the population lives. Sweden is a multicultural country in which one in five people were born in a foreign country, resulting in a highly diverse population.

Disposable income and private consumption growth are stronger than in most other European countries. The progress of the economic standards of households continues to be favourable, and the real economic standard has increased by 60% since 1961. The difference between high and low-income households in Sweden is low, and together with a large middle-class segment with high spending power, retail opportunities are promising.

The Swedish business community continues to demonstrate the ability to innovate, and with a combination of a collaborative environment and a highly skilled workforce, Sweden has become very competitive in an international setting. Sweden is the 2020 EU innovation leader, and the undeniable fact is that Sweden is home to some of the most respected and well-known brands in the world; including IKEA, Volvo, Electrolux, Ericsson, H&M, Skanska and Vattenfall. It is also the birthplace of innovative startups that have achieved global success, such as Spotify, Skype and Klarna.

Sweden is a well-connected international hub and a smart logistical choice. Early globalisation of Swedish businesses created high demand for an efficient transport and communications system and Sweden’s logistics sector has become one of the most capable in Europe. All major cities in Sweden, Denmark and Norway are accessible by road or transport from Sweden in less than 12 hours. This makes Sweden the preferred choice when companies consolidate distribution and warehousing activities in Northern Europe to one central location. Moreover, Sweden also ranks at the top of the most trade-friendly and logistically efficient nations in the world.

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