July 19, 2022

International Students Boost Swedish Economy by Adding $338m+ Annually According to New Report

P People are starting to realise how significant Sweden’s international education sector is to its economy. A recent study conducted by The Swedish Institute found that international students contribute about SEK 3.5–4 billion ($338–386 million) annually to the growth of the Swedish economy.

Swedish Institute’s study also found that international students who chose to fund their own education were responsible for 90% of the annual income the country gains. The study was conducted over a period of time, starting from the period since tuition fees were introduced for non-EU students in 2011/12.

…it can be assumed that those international students who have established themselves in the labour market also contribute to increased demand for labour through multiplier effects on their consumption and income tax…

Tuition costs accounted for about 30% of the economic impact, with the remaining costs for housing, food, entertainment, and travel made up the balance contribution, the study found. During the academic year 2020–21, each international student contributed approximately SEK 140,000 ($13,500) to the Swedish economy, the report said.

A source from the Swedish institute said that international students not only benefit Sweden economically, but they also increase the competitiveness of the nation by bringing additional skills and knowledge to the workforce.

The general director of the Swedish Institute, Madeleine Sjöstedt, wrote in a statement, "In addition, it can be assumed that those international students who have established themselves in the labour market also contribute to increased demand for labour through multiplier effects on their consumption and income tax."

Between 2013 and 21, international students paid SEK 700-1,300 million ($63-124 million) in income taxes to Sweden. Their potential annual spending on consumption is estimated to be between SEK 800 and 1,400m ($77.3m-133m).

Posted in News and tagged News, Sweden, International Students, Swedish Institute
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