Sweden’s Economic Outlook Brightens for 2026 Amid Stock Market and Fiscal Policy Shifts

The Swedish economy is poised for a notable recovery in 2026, driven by rising household incomes and expansive fiscal policies, according to experts from Nordea and Coeli. The anticipated autumn budget is expected to stimulate economic growth by around 1% of GDP, with sectors such as real estate, consumer goods, and small companies set to benefit from this upswing.

The Stockholm stock exchange, however, may see some volatility due to external risks, including concerns about the high valuations in the U.S. artificial intelligence (AI) sector and ongoing economic uncertainty in the United States. Despite these risks, the overall forecast remains optimistic, especially as the Swedish Central Bank (Riksbanken) plans to maintain stable interest rates rather than returning to zero rates, a move that could help stabilize the Swedish krona and attract foreign investors back to Sweden's markets.

The banking sector is also expected to remain strong, with significant dividend distributions anticipated to reward investors in the coming year. These dynamics underline a cautious yet promising investment climate as Sweden navigates global uncertainties.

In parallel, Sweden is gaining international attention through a pioneering wellness initiative. The campaign, "The Swedish Prescription," launched by Visit Sweden on September 23, allows doctors in the U.S., U.K., Netherlands, and Germany to prescribe travel to Sweden as a complementary well-being treatment. This innovative approach aligns with the booming global wellness tourism market, valued at $651 billion in 2022 and expected to grow by 7.6% annually through 2029.

Susanne Andersson, CEO of Visit Sweden, emphasized that while these trips support health, they are not substitutes for traditional medication. The campaign has generated widespread media coverage, with over 1,800 articles in more than 70 countries and strong social media engagement, particularly on TikTok. However, despite its popularity in media, hotel occupancy remains modest at about 52%, indicating it is too early to determine the campaign's impact on tourism volumes.

Together, these economic and tourism developments reflect Sweden's multifaceted strategy to boost growth and enhance its global standing as 2026 approaches.