SWEDEN: Useful Info

Sweden is one of strongest, most internationally integrated economies in the world. The large influx of foreign direct investment—a seven-fold increase in the last decade, amounting to almost EUR 113 billion in 10 years—helped spearhead tremendous development in infrastructure and create one of Europe’s most thriving business environments. Sweden’s biggest investors are the UK, Germany, the US, Finland, the Netherlands and Norway.

Sweden has one of the most advanced welfare systems, and has one of the world’s best standards of living and life expectancies. This attracts a large number of immigrants, which compose 10% of its population.

Sweden maintains a neutral stance in world politics. It joined the European Union in 1995 but is one of three EU members that did not adopt the Euro.

QUICK FACTS

Population: 8.9 million (Source: UN, 2005)
Capital: Stockholm
Area: 449,964 sq km (173,732 sq miles)
Major language: Swedish
Monetary unit: 1 Swedish krona = 100 ore
Main exports: Machinery and transport equipment, paper products, chemicals
GNI per capita: US $35,770 (Source: World Bank, 2005)

ECONOMIC BACKGROUND

The World Economic Forum ranked Sweden the third best country in terms of the international competitiveness of its business community and prospects for future growth. And in 2003, the Economist Intelligence Unit predicted it would retain this position, to emerge as one of the world’s top 10 business environments between 2003 and 2007.

These are just two of several international surveys that affirm the many business and investment opportunities in Sweden. Some of its potential has already been tapped by the UK. The two countries have a strong trade relationship. In 2004 alone, British exports reached £4.1 billion, making it our 10th largest export market. Sweden, in turn, exported over £5 billion worth of goods, making us their 4th largest export market. It has also invested in the UK, with over 700 Swedish firms located here.

Sweden is primarily known for its information and technology development. The European Commission’s Innovation Scoreboard for 2004 named Sweden as the leader in European innovation, with the highest employment percentage in high-tech services, amount of business R&D, number of high-tech patents and amount of innovation expenditures. In some categories, Sweden exceeds even the US and Japan.

The International Telecommunication Union also named Sweden as the top global ICT nation in its ability to access and use ICT. And according to the Economist Intelligence Unit’s e-readiness report, it is one of the most e-ready countries, citing how the Internet had reshaped business transactions.

Sweden not only has excellent infrastructure, the costs of operations are competitive. Wages for senior research personnel (a large portion of research spending) is much lower than in other European countries. Expatriates are also entitled to a special 25 percent tax relief on income for three years. Sweden’s corporate tax rate of 28% is far below than other European countries. In fact, international tax consultants have named it one of the most favorable environments in Europe for holding companies.

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