Guidance

Overseas Business Risk: Sweden

Updated 18 February 2021

1. General overview

Sweden is a wealthy, prosperous and developed country. Smooth business procedures and a willingness to engage in new international partnerships make Sweden an easy country in which to do business.

Advantages for British businesses exporting to Sweden include: English is widely used as a business language; Sweden is a geographical hub in the Nordic Region; and has a modern and friendly business environment.

Strengths of the Swedish market include: a stable economy; an educated and skilled workforce; user friendly bureaucracy; it is a pioneer in new technologies and consumer trends.

2. Politics

Sweden scores consistently highly in democracy, freedom of expression and freedom of the press global rankings. The country enjoys a stable parliamentary democracy with representation at the national level in the Riksdag (Swedish Parliament).

The current Parliament, after the most recent elections in September 2018, comprises 349 MPs from eight parties. The current minority government is headed by Prime Minister Stefan Löfven of the Social Democrats, in coalition with the Green Party and with support from the Centre Party and the Liberal Party. The next election is scheduled for 2022.

More up to date information on political risk, including political demonstrations, if and when applicable, is available in the FCDO Travel Advice for Sweden.

3. Economics

Sweden is an export-oriented economy. In 2019 exports accounted for 47% of GDP Sweden is the eighth largest economy in the EU with a GDP of £500bn. The Swedish economy relies heavily on industry output and exports. 75% of industry exports are destined for other European countries, the two biggest export markets being Germany and Norway. The UK is Sweden’s sixth largest trading partner.

Household economy is generally strong and disposable income has seen a steady rise over time. Consumers are generally seen as early adopters and curious about international products. Awareness about sustainability is generally high and tends to guide consumer behaviour to some extent.

4. Business and Human Rights

Promoting and increasing respect for human rights is a priority issue in Swedish foreign policy. The Swedish Government aims to pursue a coherent and results-oriented human rights policy and The European Convention on Human Rights has been incorporated into Swedish law since joining the EU in 1995.

Sweden has no major business or human rights issues. Rather, it is often highlighted as a world leader in the area. Generally Sweden is seen as having high living standards, a robust economy and relatively low unemployment. In a 2020 World Bank Ease of Doing Business report, Sweden was ranked tenth out of 190 countries.

Sweden’s entrepreneurs and companies have proven that it is possible to make profit without exploiting employees or the environment. Global surveys regularly put Swedish companies among the world leaders when it comes to corporate social responsibility (CSR) — taking issues such as climate change, equality, human rights and anti-corruption into account in their business activities.

Adding to this, Sweden and the UK have long been close partners as champions of free trade and the multilateral system. With the UK’s departure from the EU, Sweden has increasingly taken up the mantle of the EU’s leading free-trader.

Sweden is a free and open society, where people have the right to take part in demonstrations, enjoy freedom of speech and a free press. Gender equality is one of the cornerstones of Swedish society meaning that women and men enjoy the same opportunities, rights and obligations in all areas of life. In the Global Gender Gap Report 2020, drawn up by the World Economic Forum, Sweden was one of the world leaders in equality at fourth on the list.

The Equality Ombudsman was established in 2009 followed by the Discrimination Act which gives citizens stronger and broader protection against discrimination. Sweden aspires to ensure equal pay for men and women and to provide equal rights in the workplace regardless of gender, disability, race or sexual preference.

5. Bribery and corruption

Bribery is illegal. It is an offence for British nationals or someone who is ordinarily resident in the UK, a body incorporated in the UK or a Scottish partnership, to bribe anywhere in the world.

In addition, a commercial organisation carrying on a business in the UK can be liable for the conduct of a person who is neither a UK national or resident in the UK or a body incorporated or formed in the UK. In this case it does not matter whether the acts or omissions which form part of the offence take place in the UK or elsewhere.

According to the NGO Transparency International’s corruption perception index (CPI), Sweden was joint third in the world in 2020.

6. Terrorism and security

For information regarding terrorism and protective security/organised crime please go to the FCDO Travel Advice page.

7. Intellectual Property

IP rights are territorial, that is they only give protection in the countries where they are granted or registered. A European patent is a “bundle” of individual European patents. There is no single European patent. If you are thinking about trading internationally, they you should consider registering your IP rights in your export markets.

The Swedish Patent and Registration Office (PRV), provides protection and exclusive rights for technological ideas, trademarks and industrial designs.

8. UK Export Finance

The government can provide finance or credit insurance specifically to support UK exports through UK Export Finance – the UK’s export credit agency. For up-to-date country specific information on the support available see UK Export Finance’s country cover policy and indicators.

9. Contact

Contact the DBT team in Sweden for more information and advice on opportunities for doing business in Sweden.