Sweden has a strong and competitive economy, characterized by a mix of free market capitalism and robust social welfare systems. The service sector is the largest contributor to GDP, followed by manufacturing, particularly in automotive and telecommunications. Sweden has a stable economic growth rate, low unemployment, and a high labor force participation, especially among women. As an export-driven economy, it thrives on trade, especially with the EU, the US, and China. Innovation and sustainability are key focus areas, with Stockholm being a hub for tech startups. The country’s fiscal policies emphasize low public debt, high taxes, and a generous welfare system, ensuring a high standard of living. However, challenges include an aging population, labor shortages, and rising housing costs. Despite these, Sweden’s commitment to green technology and innovation ensures a positive economic outlook.