Sweden Sees Dramatic Rise in Poverty Amid Inflation and Social Benefit Erosion

Recent reports reveal a striking surge in poverty levels across Sweden, with the number of people living in poverty nearly tripling since 2021. According to Statistics Sweden, the count of impoverished Swedes has jumped from 150,000 to 408,000 in just five years.

The increase is measured based on individuals' inability to afford a prescribed standard of living, including essential expenses. Experts point to several causes behind this worrying trend. Inflation is widely cited as a major contributing factor. Fredrik Kopsch, chief economist at Timbro, believes inflation is the primary driver of the rise in poverty, directly eroding purchasing power.

Additionally, the erosion of social benefits has intensified financial insecurity. Tapio Salonen, professor of social work at Malmö University and economist at Timbro, highlights that social support measures like housing benefits and unemployment insurance have not kept pace with soaring living costs. This lag has left many more Swedes struggling to make ends meet.

Salonen further warns that Sweden’s reputation as a leading welfare state is diminishing, now placing it as an average welfare society amid global comparisons. The combination of rising prices and stagnant social benefits has pushed a growing portion of the population into serious financial distress.

With nearly three times as many people identifying as "seriously poor" compared to four years ago, Sweden faces a critical challenge to reinvigorate its welfare policies and control inflation to safeguard vulnerable citizens.

The situation is unfolding amid ongoing economic pressures, spotlighting the urgent need for policy responses to halt and reverse this upward poverty trend.