Foreign Direct Investment

According to UNCTAD's World Investment Report 2022, FDI inflows to Sweden increased 43.4% in 2021, reaching USD 27 billion, up from USD 18.8 billion one year earlier. In the same year, Sweden was in 14th place among the world's most attractive countries for investments. The stock of FDI stood at USD 386.5 billion in 2021, around 61.6% of the country’s GDP. Sweden is also a big investor, with an outward FDI stock of USD 447.5 billion (71.3% of GDP). In terms of FDI stocks, the UK, Luxembourg, the Netherlands, Germany, the U.S., and Norway are the main investing countries in Sweden. The largest foreign assets are held in the financial and insurance activities sector, manufacture of petroleum, chemical products, rubber and plastic products. In 2021, the largest increase was recorded in the information and communication sector (data Statistics Sweden). According to the latest figures from OECD, in the first semester of 2022, FDI inflows to Sweden reached USD 22.6 billion, up by more than 40% compared to the same period one year earlier.
 
Despite the unfavourable international situation, the country maintains a high level of appeal to foreign investors, because of its multilingual and qualified workforce, very high per capita purchasing power, an economy at the forefront of new technologies and innovation, as well as its advantageous tax regime. The Swedish government has undertaken measures to develop support for investment, focusing on key sectors (biotechnologies and food processing), as well as rapidly growing markets (Baltic countries, India, Brazil, etc.). There are gaps in the food-processing field, as well as in the housing and interior design sectors. The government assigned the Inspectorate of Strategic Products (ISP) and the Swedish Defence Research Agency (FOI) the monitoring of FDI in sensitive areas. Sweden is one of the few EU Member States that did not yet introduce FDI screening rules. However, proposed legislation was presented, which is expected to enter into force in 2023. As evidence of the quality of the Swedish business climate, the country ranks high on most international investment lists, including the Economist Business Environment ranking (7th out of 82 countries), the AT Kearney 2022 Foreign Direct Investment Confidence Index (13th worldwide), and the Global Innovation Index 2022 (3rd worldwide, the country has been in the top 3 for over a decade).