Over one hundred years of backward (one of the poorest in Europe) countries, as it was in the middle of the XIX century., Became one of the most economically developed nations. In 1970, the value of industrial output per capita in Sweden in the first place in Europe.
Transforming the economy from a backward agrarian to industrial best promote the availability of large stocks of critical natural resources: iron ore, timber, hydropower. A huge external demand for Swedish iron ore and timber, the ability of Sweden to develop the resources and proximity to European markets in an era of high transport costs were the main factors of development.
In 70-ies of the last century, the Swedish iron ore and timber were needed for the industrialization of Europe. Increased export of Swedish industrialization of the country and contributed to the growth of urban population, which in turn led to the development of railways and construction. Based on Swedish inventions were created and quickly grow new companies in metallurgy and machine building. Although still dominated by sawmills and iron industry quickly developed pulp and paper industry, machine-building.
The proportion of the workforce in industry, 1870 and 1913 increased from 15 to 34%. Top of the First World War, agriculture still accounts for half of las-working population.
In the face of rapid population growth was the importance of emigration, primarily to North America. In the 1860-1930 biennium. have left the country 1.2 million Swedes. Emigration helped prevent starvation and mass unemployment. Sweden has avoided involvement in both world wars, which allowed not only to maintain-ing productive capacity and labor resources, but also greatly enriched in supplying warring countries and to restore the European economy.