Sweden Faces Annual Economic Loss of 600 Billion Kronor Amid Record Fund Wealth and Strategic Investments

Sweden is experiencing a paradoxical economic landscape as it records an unprecedented increase in fund wealth while simultaneously grappling with significant losses stemming from inefficient resource use. According to the latest data, Swedish fund assets have reached a new high of 8,540 billion kronor by the end of the third quarter of 2025, marking an increase of 342 billion kronor or 4.2 percent compared to the previous quarter.

Amid this backdrop of growing investment wealth, a report from Rise Research Institutes of Sweden and Circle Economy reveals a striking economic challenge: Sweden loses approximately 600 billion kronor annually due to its linear 'throwaway' economy. The “Circularity Gap Report (CGR) Värdegapet: Sverige” introduces the concept of the 'value gap'—the lost potential economic value from products and resources that are not fully utilized. Sweden’s value gap stands at 19 percent, meaning nearly one-fifth of potential economic value is lost every year, an amount equivalent to about 57 percent of the national budget.

In investment strategies, firms like Spiltan Invest are adopting unique long-term approaches to nurture profitability. With a portfolio valued at around 8.5 billion kronor, Spiltan prioritizes minority stakes in mature, profitable unlisted companies and emphasizes partnering with entrepreneurs who share their commitment to sustainable growth. Spiltan’s COO Göran Pallmar explained that unlike private equity firms with fixed exit strategies, their firm remains involved in companies until mutually agreed decisions are reached, fostering collaboration and value creation rather than short-term gains.

These developments highlight contrasting forces shaping Sweden’s economic outlook: while institutional investors are building wealth through focused long-term strategies, the broader economy suffers significant losses tied to unsustainable consumption and production patterns. Addressing the circularity gap could unlock substantial value, reducing the 600 billion kronor annual loss and supporting a more resilient and sustainable Swedish economy.