Sweden History

Sweden stayed neutral during WWI and so wasn't significantly affected by it although it did benefit from the increase in world demand for steel, wood pulp and other raw materials at that time. This demand and post-war expansion brought about the prosperity which formed the basis of the country's social welfare model which is still largely in place today. The welfare state was introduced by the Social democrats in 1932.

Sweden was concerned in the 1930s about Germany and the USSR's threatening expansionist policys, but it still remained neutral and remained so during WW2.

In the 1950s and 1960s the standard of living for ordinary people was rising until the world recession in the 1990s which caused a devaluation of the Swedish Krona and shook the country’s economy. The 2003 referendum on whether the Euro should be introduced in Sweden resulted in a ‘no’ vote. Since 2006, the centre-right Alliance for Sweden have formed the government.

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