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What happened to Sweden?

Business climate

Businesses and talent flight

When the business climate becomes a security question, decisions about hiring, investment and even residency change. Swedish industry has begun to document the costs.

What entrepreneurs report

The Confederation of Swedish Enterprise's annual surveys show a steep rise in the share of entrepreneurs who say they have been affected by crime: theft, threats, vandalism, protection rackets. In 2023, around one in four entrepreneurs in the most affected sectors said they had considered relocating part or all of their business because of insecurity.

A small open economy like Sweden's lives on trust — that contracts hold, that police protect property, that you can recruit talent. Each of those three pillars has weakened in the past fifteen years.

Magnus Henrekson, professor of economics, IFN

The recruitment problem

International talent rankings (IMD, INSEAD) have downgraded Sweden in successive editions, citing quality of life, school results and personal safety. Several Stockholm-based tech employers report that international recruits decline offers after researching crime statistics — a problem that did not exist a decade ago.

Missed and lost investments

Anecdotal but recurring: large logistics centres, retail chains and franchise operators have pulled out of specific districts or chosen sites in neighbouring municipalities. The Swedish Trade Federation's security survey shows that in vulnerable areas the share of shops reporting weekly thefts is several times the national average — directly affecting margins and the willingness to invest.

Read the full investigation of how Sweden has changed.

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