Swedish Economy Shows Signs of Recovery and Growth in 2025
Sweden’s economy demonstrates strengthening in 2025 with rising consumer spending and sectoral growth amid ongoing national and international developments.
- • Riksbank governor Erik Thedéen notes signs of economic improvement despite earlier slower GDP growth.
- • Consumer spending on non-durables rose 8% year-on-year, indicating rising household demand.
- • Gröna arbetsgivare reports that the improving economy is benefiting agriculture and growing as a whole.
- • Sweden and Ukraine have signed a deal for up to 150 Gripen fighter jets, crucial for Ukraine's security.
- • Sida is reviewing aid protocols due to concerns about links to terrorism funding.
Key details
Erik Thedéen, governor of Sweden's central bank Riksbank, has signaled optimism about the Swedish economy despite lower-than-expected GDP growth in the first half of 2025. He pointed to a significant rise in consumer spending, especially on non-durable goods, which have increased by 8% year-on-year, marking a key indicator of economic recovery.
The positive economic momentum is not limited to consumer behavior but extends broadly across various sectors. According to the organization Gröna arbetsgivare, the improving economic outlook is benefiting agriculture and reflects a general growth trend across the Swedish economy. This suggests a more comprehensive strengthening of economic conditions beyond isolated improvements.
These encouraging signs come amid other significant national and international developments reported alongside the economic news. Notably, Sweden and Ukraine have reached an agreement for the potential sale of 100 to 150 Gripen fighter jets, with deliveries expected to start within three years. Ukrainian President Volodymyr Zelenskyy emphasized the deal's importance for security guarantees against Russia.
Thedéen also acknowledged concerns over Swedish aid funding possibly reaching organizations linked to Hamas, prompting a review by Sida, the Swedish International Development Cooperation Agency, to tighten oversight and prevent any financing of terrorism.
In summary, despite a slow start indicated by subdued GDP growth earlier this year, Sweden's economy is showing clear signs of recovery and growing strength, supported by robust consumer spending and sectoral improvements such as agriculture. Thedéen’s statements combined with reports from Gröna arbetsgivare underline a broadening economic revival in the country in 2025.