Sweden Faces Growing Economic Disparities and Rising Inflation in 2025
Sweden's economy in 2025 is marked by rising unemployment, inflation, and widening wealth disparity, highlighting serious socio-economic issues.
Key Points
- • Unemployment rose to 10.4% in May 2025, with a 1.9 percentage point increase since earlier in the year.
- • Child evictions increased by 5%, affecting 711 children, while overcrowded housing rates have surged by 36% since 2012.
- • Preliminary inflation rates indicate a possible rise to 2.4% in May, driven by increases in travel and coffee prices.
- • Wealth for the richest continues to grow, with significant net worth increases reported for prominent families.
In 2025, Sweden is grappling with a deepening economic divide characterized by rising unemployment, increased child evictions, and a surge in inflation that affects the cost of living for many citizens. This complex situation reveals a nation where wealth for the elite continues to grow, while ordinary Swedes face severe financial challenges.
Recent analysis highlights that Sweden's unemployment rate reached 10.4% as of May 2025, marking a significant increase of 1.9 percentage points from earlier in the year (ID: 2480). The impact of this rising unemployment is evident in the worsening financial situations of families, as the number of children affected by evictions grew by 5% this year, equating to 711 children facing this distressing circumstance. Furthermore, the number of children living in overcrowded conditions has increased by 36% since 2012, underscoring a critical social issue amid the expanding wealth gap.
On the wealthier end of the economic spectrum, oligarchs are seeing their fortunes multiply. For instance, Stefan Persson's wealth has increased by approximately 20 billion kronor recently, while the Axel Johnson family's net worth rose by 14%. These alterations in wealth starkly contrast with the hardships experienced by many citizens, as evinced by the increasing number of new debt collection cases, which are outpacing resolutions, suggesting an alarming trend in payment difficulties.
Compounding these issues, preliminary inflation figures for May are set to be announced on June 5, 2025, with expectations of a rise above the Riksbank's forecasts. Handelsbanken anticipates a slight increase in the KPIF inflation rate to 2.4%, compared to 2.3% in April (ID: 2486). Factors contributing to this inflationary pressure include significant price hikes in sectors such as travel and coffee. Meanwhile, Riksbanken remains cautious, having recently lowered interest rates but opening the possibility for further reductions in June, reflecting a varied outlook among major banks regarding monetary policy going forward.
As Sweden navigates these economic challenges, the divide between the affluent and the struggling population grows ever more pronounced, presenting a severe policy dilemma for the government and economists alike.