Swedish Businesses See Recovery as Consumer Confidence Grows
Sweden's economy shows signs of recovery with declining bankruptcies and increasing consumer confidence in 2025.
Key Points
- • 5% decrease in business bankruptcies in June 2025
- • 5% increase in new business startups
- • 68% of Swedes unaffected by economic worries regarding travel plans
- • Growing interest in European travel destinations
In June 2025, Sweden's economy showcased promising signs of recovery with a notable 5% decrease in business bankruptcies compared to last year, marking three consecutive months of declining bankruptcies. At the same time, there was a 5% increase in the number of new businesses established, according to data from UC, a prominent business and credit information company. Certain sectors benefitted from this trend; for instance, the construction industry and wholesale trade witnessed significant reductions in bankruptcies, decreasing by 24% and 18% respectively. However, challenges remain, particularly for the hotel and restaurant sectors, which reported increases in bankruptcies of 1% and 5%. Amanda Aldestam, an analyst at UC, noted, "Although we see some positive trends, the economic environment is characterized by low growth, high unemployment, and prudent investment approaches."
Concurrently, consumer confidence appears to be strengthening, as highlighted by a recent survey by Kantar Media for TUI. The survey indicates that 68% of Swedes believe their economic situation will not impact their travel plans for the upcoming year, a rise from 61% in the previous year. This sentiment is further supported by a dramatic decrease in the percentage of individuals altering their travel plans due to financial concerns; this figure dropped from 33% to 18%. The shift indicates a growing resilience among consumers despite previous economic uncertainties.
Moreover, interest in traveling abroad has surged, with a doubling of bookings to popular Eurozone destinations like Costa Dorada and Costa Brava. Bookings to Malaga and Costa del Sol have also seen an increase of over 40% compared to last year. Demonstrating a sharp turnaround from earlier behavior, the number of respondents planning to travel domestically instead of internationally has dwindled from 11% to just 4%.
Looking forward, the Riksbank's recent interest rate cut could further bolster household purchasing power, potentially enhancing consumer spending and confidence in the months to come. However, ongoing trade tensions and tariff negotiations stand as influential factors that may affect future economic stability and planning conditions.