Gross Domestic Product (GDP) is the market value of all goods and services produced in a country during one year. In the early 1990s, the Swedish GDP decreased, which caused Sweden to fall in GDP rankings. Since then, however, the growth rate of the Swedish economy has been relatively high compared to that of other countries, once again narrowing the gap in GDP between Sweden and other comparable countries.
GDP is the market value of all goods and services produced in a country during one year. Although GDP is not a perfect measure, it reflects the size of an economy. The most common way of describing economic growth is to state the increase of GDP over time.
In the 1970s and the 1980s, Swedish GDP growth was lower than both the average growth rate of the EU and the average growth of the OECD area. The recession in Sweden in the beginning of the 1990s caused a low-water mark for economic growth in Sweden as the GDP actually fell by about 4 percent in terms of volume for three years between 1990 and 1993. Another smaller downturn occurred in 2000 in connection with the dot-com bubble. A larger recession occurred when the global financial crisis hit in 2008-2009. Overall the Swedish economy has however seen relatively high economic growth after the crisis in the early 1990s, roughly matching that of the US economy and exceeding the OECD average. Another recession occurred during the initial phase of the corona-pandemic in 2020, the growth has since then recovered beyond the levels before the pandemic.