The chart above illustrates the historical development of industrial production in Sweden since 1913.
The increase in industrial output starting from the mid 1990s up to 2008 was driven by, among other things, a strong growth in Swedish exports. The starting point for the increase in exports was the devaluation of the Swedish currency, the Krona, in 1992. As the Swedish currency dropped in value compared to other currencies, Swedish products became less expensive on the international market. Another important factor behind the strong Swedish development is the sharp increase in productivity of many Swedish industrial sectors. Improved productivity causes products to become more competitive on the international market.
The sharp fall in industrial output in 2009 was a direct consequence of the financial crisis and the subsequent recession. The recovery was further delayed by the debt crisis in the euro zone, since it consits of important trading partners. Between 2014 and 2019 industrial production picked up again, albeit not quite to the same level as we had before the financial crisis. When the corona-pandemic hit in 2020 industrial production fell initially, but then soon recovered.