information:highlighting, structural:expansion
Post-war era

Sweden was officially a neutral country and remained outside NATO and Warsaw Pact membership during the Cold War, but privately Sweden's leadership had strong ties with the United States and other western governments. Following the war, Sweden took advantage of an intact industrial base, social stability and its natural resources to expand its industry to supply the rebuilding of Europe. Sweden received aid under the Marshall Plan and participated in the OECD. During most of the post-war era, the country was governed by the Swedish Social Democratic Party largely in co-operation with trade unions and industry. The government actively pursued an internationally competitive manufacturing sector of primarily large corporations.

Sweden was one of the founding states of the European Free Trade Area (EFTA). During the 1960s the EFTA countries were often referred to as the Outer Seven, as opposed to the Inner Six of the then- European Economic Community (EEC).

Like many industrialised countries, Sweden entered a period of economic decline and upheaval following the oil embargoes of 1973–74 and 1978–79. In the 1980s several key Swedish industries were significantly restructured. Shipbuilding was discontinued, wood pulp was integrated into modernised paper production, the steel industry was concentrated and specialised, and mechanical engineering was robotised. Swedish GDP per capita ranking declined during this time.