THE SWEDISH ECONOMY
Industrial employers’ chief economist Kerstin Hallsten warns of a fragile recovery for the technology industry. Archive image. Photo: Anders Wiklund/TT
There are signs of a recovery in the recession, according to an economic report from Technology Companies and Industrial Employers.
“The development is fragile,” warns Kerstin Hallsten, chief economist at Industriarbetsgivarna.
Swedish growth shifts up from an estimated 1.2 percent in 2025 to 2.6 percent in 2026, according to the report.
“Usually, exports are what lift Sweden out of recessions, but this is not the case this time. High import duties in the USA throw gravel into the global trade machinery and this dampens Swedish exports going forward. In addition, the krona has strengthened during the year, which benefits households but affects the profitability of exporting companies,” says Teknikföretagen’s chief economist, Erik Spector, according to a press release.
Unemployment is expected to peak at 8.7 percent this year before falling back down to 8.4 percent in 2026, the same level as in 2024.
The technology industry is expected to increase production by 5.4 percent in 2026 after the decline of 3.5 percent this year and last year.
“Above all, the defense industry is expected to continue to increase production as a result of the shift towards permanently higher defense spending in Europe,” the organizations write in a press release.
