Sweden's Criminal Economy Turns Over 352 Billion Kronor Annually, Generating 185 Billion in Profits

Sweden's criminal economy has been estimated to have an annual turnover of approximately 352 billion kronor, generating profits of around 185 billion kronor, which corresponds to about 5.5% of the nation's GDP. Recent reports from Swedish authorities reveal that organized crime earnings are significantly higher than previously thought, marking one in every twenty kronor circulating in the Swedish payment system as stemming from criminal activity.

The criminal economy is segmented into four sectors: the black economy, illegal economy, criminal transactions, and services related to criminal enterprises such as money laundering. The largest share of profits—around 96 billion kronor—derives from the black economy, predominantly unreported work and tax evasion, with unreported labor alone accounting for 60 billion kronor. Welfare system exploitation is also notably substantial, totaling 189 billion kronor, and encompassing frauds against the state and the European Union.

Traditional crimes including property offenses, fraud (24 billion kronor), drug trafficking (10 billion kronor), and money laundering (9 billion kronor) represent smaller proportions of the total turnover. These criminal activities impact society by undermining public finances, legitimate business competition, and trust in state institutions.

Petra Lundh, Sweden's national police chief, emphasized the profound societal threat posed by these levels of economic crime and the necessity for a systemic and holistic approach to counteract it. Lundh stressed that mere prosecution is insufficient due to the continuous emergence of new offenders. The establishment of a new council aimed at combating organized crime underlines the increased focus on coordinating efforts among policymakers and law enforcement.

The findings are based on conservative estimates, suggesting the actual scope and economic influence of Sweden's criminal economy might be even greater. This leveling up of the understanding of Sweden's organized crime economy underlines the urgency of intensified, collective measures across society to tackle the issue.