The chart above illustrates how the industrial production has developed in Sweden and Europe since 1990. The industrial production has been higher in Sweden than in the EU-27, illustrated by a steeper curve for Sweden in the chart.
The increase in industrial output, among other things, is driven by strong growth in Swedish exports. The starting point for the increase in exports was the decrease in value of the Swedish currency, the Krona, in 1992. As the Swedish currency dropped in value against other currencies, it became cheaper to buy Swedish products abroad. Another important factor behind the strong Swedish development has been that productivity has risen sharply in many Swedish industrial sectors. Improved productivity means that products become more competitive on the international market.
The sharp fall in industrial output, which occured in 2009, has its origin in the financial crisis and subsequent recession. Sweden, and especially the Swedish export, was one of the most affected countries by the dramatically reduced demand for industrial products.