The economy of Sweden is a developed diverse economy, aided by timber, hydropower and iron ore. These constitute the resource base of an economy oriented toward foreign trade. The main industries include motor vehicles, telecommunications, pharmaceuticals, industrial machines, precision equipments, chemical goods, home goods and appliances, forestry, iron and steel.

Because Sweden, as a neutral country, did not actively participate in World War II, it did not have to rebuild its economic base, banking system, and country as a whole, as many other European countries did. Sweden has achieved a high standard of living under a mixed system of high-tech capitalism and extensive welfare benefits. Sweden has the second highest total tax revenue behind Denmark, as a share of the country's income. As of 2010^[update], total tax revenue was 45.8% of GDP, down from 48.3% in 2006.

In the 19th century Sweden evolved from a largely agricultural economy into the beginnings of an industrialized, urbanized country. Poverty was still widespread in sections of the population. However, incomes were sufficiently high to finance emigration to distant places, prompting a large portion of the country to leave, especially to the USA.

Sweden (ⁱ/ˈswiːdən/ SWEE-dən; Swedish: Sverige [ˈsværjɛ] ( listen)), officially the Kingdom of Sweden (Swedish:  Konungariket Sverige (help·info)), is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland, and is connected to Denmark by a bridge-tunnel across the Øresund.

At 450,295 square kilometres (173,860 sq mi), Sweden is the third largest country in the European Union by area, with a total population of about 9.4 million. Sweden has a low population density of 21 inhabitants per square kilometre (54 /sq mi) with the population mostly concentrated to the southern half of the country. About 85% of the population live in urban areas. Sweden's capital city is Stockholm, which is also the largest city.

Sweden emerged as an independent and unified country during the Middle Ages. In the 17th century, the country expanded its territories to form the Swedish Empire. The empire grew to be one of the great powers of Europe in the 17th and early 18th century. Most of the conquered territories outside the Scandinavian Peninsula were lost during the 18th and 19th centuries. The eastern half of Sweden, present-day Finland, was lost to Russia in 1809. The last war in which Sweden was directly involved was in 1814, when Sweden by military means forced Norway into a personal union. Since then, Sweden has been at peace, practicing "non-participation in military alliances during peacetime and neutrality during wartime". However, Sweden has been a member of the European Union since 1 January 1995 and is a member of the OECD.