Industry Recovery Signs Emerge Amid Fragile Economic Conditions

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Industry Recovery Signs Emerge Amid Fragile Economic Conditions
Photo: Anders Wiklund/TT

There are signs of a recovery in the recession, according to a business report from Teknikföretagen and Industriarbetsgivarna. ”The development is fragile”, warns Kerstin Hallsten, chief economist at Industriarbetsgivarna.

Swedish growth is shifting up from the estimated 1.2 percent in 2025 to 2.6 percent in 2026, according to the report.

"Normally, exports are what lift Sweden out of lowconjuncture, but that's not the case this time. High import duties in the USA are throwing a spanner in the global trade machine and this is dampening Swedish exports ahead. In addition, the krona has strengthened during the year, which benefits households but affects the profitability of exporting companies", says Teknikföretagen's chief economist, Erik Spector, according to a press release.

Unemployment is expected to peak at 8.7 percent this year to decline back to 8.4 percent in 2026, the same level as in 2024.

The technology industry is expected to increase production by 5.4 percent in 2026 after the decline of 3.5 percent this year and last year.

"Above all, the defense industry is expected to continue to increase production as a result of the shift towards permanently higher defense spending in Europe", the organizations write in a press release.

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By TTEnglish edition by Sweden Herald, adapted for our readers

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