Sweden on the Brink: Economic Decline Compared to Mississippi
Editorial critiques reveal Sweden's declining economic status, warning it may soon fall behind Mississippi.
Key Points
- • Sweden's GDP per capita risks falling below Mississippi's in 2024.
- • The number of US states richer than Sweden increased from 38 in 2021 to nearly all in 2024.
- • Sweden's OECD prosperity ranking has dropped from 4th in 1970 to 13th now.
- • Unique challenges such as high taxes hinder economic growth.
A recent editorial highlights the alarming economic status of Sweden, suggesting it may soon be poorer than Mississippi, currently the least wealthy U.S. state. Published in Skaraborgs Allehanda, the piece argues that Sweden's GDP per capita is on a worrying decline, with projections indicating that in 2024, only Mississippi will rank lower among U.S. states. Data from the World Bank and U.S. economic agencies reveals that the number of states exceeding Sweden's wealth has escalated dramatically from 38 in 2021 to 46 in 2022, and nearly all states by 2024.
In addition to this disconcerting GDP outlook, the editorial notes Sweden's drop in the OECD prosperity rankings — sliding from 4th place in 1970 to 13th today, now trailing behind countries like the USA, Ireland, and Switzerland. The country's recent economic performance has been weak, highlighted by a 0.3% decline in GDP reported in May 2023.
The author, Rutger Brattström, attributes this economic downturn to distinctive Swedish challenges such as excessive taxation, restrictive rental regulations, bureaucratic inefficiencies in permitting, a rigid labor market, and ineffective energy policies. Brattström asserts that without urgent reforms to stimulate growth, Sweden risks an even more significant economic regression.