UK Business Climate Survey 2024: Resilience and optimism amongst Swedish businesses in the UK

24 October 2024

Swedish companies continue to thrive and remain committed to their UK presence, according to the fifth edition of the UK Business Climate Survey. Most companies reported a profitable financial performance, and four out of five expected their turnover to grow in the upcoming year – indicating remarkable resilience amongst Swedish companies despite economic and geopolitical challenges. 

The annual UK Business Climate Survey is conducted by Team Sweden - the Swedish Chamber of Commerce for the UK, Business Sweden (the Swedish Trade and Invest Council), and the Embassy of Sweden in London - and provides key insights into the challenges and opportunities faced by Swedish companies operating in the UK.

The UK – a key market for Swedish businesses
Findings from 2024’s edition of the survey indicate that Swedish businesses in the UK retain their strong position amidst a complex economic landscape. Consistent with last year, 60 per cent of responding companies reported a profitable financial performance in 2023. The percentage of businesses reporting losses has decreased from 14 per cent in 2022 down to 10 per cent, and an optimistic four out of five expect a turnover increase in the coming year.

“The UK is one of the world’s top economies and continues to be a vital market for Swedish companies. Seeing that companies are not only making profits but also maintaining a positive outlook for the future, is highly encouraging,” says Fredrik Warneryd, Chief Executive at the Swedish Chamber of Commerce for the UK.  

Furthermore, the percentage of companies expecting a turnover decrease has fallen sharply from 12 per cent to just 2 per cent, further demonstrating a hopeful perspective on the year to come.

“As part of Team Sweden, the Embassy of Sweden welcomes the encouraging results from this year’s Business Climate Survey – which is the first to have been conducted since Sweden’s accession to NATO as well as the signing of the Strategic Partnership Agreement between Sweden and the UK last year,” says Swedish Ambassador H.E. Mr Stefan Gullgren. 

A committed presence 
According to this year’s survey, the UK remains a crucial market for Swedish businesses, with 30 per cent of respondents having established operations here since 2018. Once established, the companies also remain committed to their presence in the UK, as a majority of respondents plan to increase their investments in the upcoming 12 months.

“These results highlight the UK’s appealing location and strong trade links with European and global markets. It also confirms a lot of what we pick up from our member businesses operating here: the UK is not only a venue for raising capital and selling products, but also a hub of innovation across various sectors,” says Fredrik.

The strong ‘Swedish Brand’
Moreover, results indicate that the strength of the ‘Swedish Brand’ continues to be a significant competitive advantage in the UK market, with a majority of businesses describing it as a positive contributor to their business.

“Swedish companies are widely recognised for their innovation, quality, and sustainable practices, which historically resonates well with UK consumers and businesses alike. As reflected not least in our membership, it’s great to see companies across a variety of sectors continuing to nurture and unite in the name of their ‘Swedishness’ here in the UK,” Fredrik states.

Additionally, Swedish companies report an increased demand for sustainable business-practices amongst their clients, with an astonishing nine out of ten respondents reporting that their customers take environmental considerations into account when making purchasing decisions.

“Considering Swedish companies’ renowned status as pioneers in the green transition, these results not only strengthen their established presence in the UK – but also shows significant opportunities for new Swedish solutions to be applied on the UK stage,” says Fredrik.

Robustness during uncertain times
Conducted in March 2024, this year’s survey took place in a unique context – including an impending General Election in the UK and geopolitical tensions. Undoubtedly, this has far-reaching effects on business operations on a national, as well as on an international level. Despite the uncertainties and its potential to delay strategic decisions and investments, the 2024 results once again point to a steadfast UK presence amongst Swedish companies, and continued strong bilateral trade relations between the countries.

“This annual survey is regularly used to help identify new opportunities and track challenges faced by Swedish-linked companies trading with the UK – and together the Team Sweden UK organisations welcome further company engagement to explore support options on the back of its findings”, says Gustaf Bergström, Trade and Invest Commissioner to the UK and Ireland at Business Sweden.

“With a lot of key results remaining fairly consistent over the years - Swedish companies have really shown remarkable resilience during uncertain times,” Fredrik concludes.