Sweden’s credit profile is characterized by a robust fiscal and monetary framework, accompanied by strong institutions and government effectiveness. Sweden is an export-oriented economy with significant natural resources such as timber, hydropower, and minerals. Sweden benefits from low general government debt and healthy debt affordability reflecting prudent fiscal policies. The economic stability is further strengthened with a low inflationary environment, bolstering investor confidence. Sweden is a robust welfare state, with a commitment to social equity and public services.

While the economy contracted in 2023, economic growth is expected to rebound by 2025 following improvements in the global supply chain and an increase in domestic demand.