The Swedish economy seems to be coming out of recession. The Confederation of Swedish Industry's (Svenskt Näringsliv) Economic Indicator now shows a positive value for the first time in four years, while the organization forecasts GDP growth of 2.9% this year and 2.7% in 2027.
For the tourism and travel sector, this news comes at a time when several indicators are already pointing in the same direction, namely, that households are starting to consume more and the demand for travel and experiences remains.
Travel News reported last week on the survey of companies carried out by the Riksbank (central bank), in which hotels, restaurants and commerce described the summer as strong, and companies were also more optimistic about household consumption in the future.
The transport sector also had a strong summer. The Swedish SJ (CP) recorded its best summer in terms of travel since the beginning of the pandemic and increased passenger numbers by 2% compared to the summer of 2025, despite a reduced supply.
At the same time, travel agency sales show that Swedes are still willing to spend money on holidays. Apollo, for example, recently indicated that sales of exotic trips have more than doubled in recent weeks compared to the same period last year, with Thailand notably recording an increase of 142%.
Consumption is recovering
Svenskt Näringsliv's chief economist, Sven-Olov Daunfeldt, describes these developments as a sign that economic growth is now gaining momentum after the prolonged recession.
According to Svenskt Näringsliv, the recovery is broad-based and driven, among other factors, by private consumption, industrial production and exports.
Daunfeldt – This is a long-awaited economic recovery.
However, there are factors that could slow down this development. Svenskt Näringsliv expects the Riksbank to raise the benchmark interest rate by a total of 50 points over the forecast period, and higher interest rates on longer maturities pose an additional risk, especially as Swedish households are relatively sensitive to interest rate changes.
Source: Starkare svensk ekonomi kan lyfta resandet och turismen
