Market research

Economic situation – Global economic uncertainty shapes growth prospects

The global economy is in an uncertain situation where factors such as geopolitical tensions, currency uncertainty, global trade conflicts and tariff threats play a decisive role. The war in Ukraine, Gaza and the instability in the Middle East contribute to unrest in energy and commodity markets, affecting logistics and supply chains. Right-wing governments in Europe tend to prioritize domestic investments, which can affect innovation support, public procurement and growth initiatives. For Sweden, which is one of Europe’s most export-dependent countries, developments in international markets are of central importance.

In Sweden, the weaker market situation persisted during the first quarter of 2025 and the economic situation is characterized by a continued recession but with signs of a gradual recovery. The inflation rate is slowing in Sweden, which opens the way for more interest rate cuts during the year. The first quarter has been characterized by a continued uncertain global situation with significant fluctuations in both the Swedish and global economies, which has characterized the business climate and affected the willingness to invest in most industries.

However, banks are delivering strong results thanks to high interest rates and low loan losses.

The industry is showing resilience, especially in automation and engineering. However, the automotive sector is under pressure.

Market overview IT and consulting industry

The IT industry is seeing a lukewarm start to 2025. Despite the current economic situation, digitalization and new technology continue to be strong driving forces within the industry.

The IT economy is expected to grow by 4.2% in 2025, equivalent to SEK 10 billion. Companies are expected to increase their IT investments again, especially in business-financed IT.

The information and communications sector, including telecommunications and information services, is showing strong growth.

Within the public sector, demand for IT consultants is stable, especially for digitalization expertise and e-government.

According to the Swedish Technology Association, order intake for the technology industry is increasing, but to a lesser extent than in the previous quarter. However, the number of employees in Tech has decreased slightly in early 2025 compared to the same period in 2024.

Fragmented market with large variations

The demand for IT consultants remains high, but the market is fragmented and characterized by large variations depending on region, industry and areas of expertise. However, the volume of assignments is decreasing sharply, especially in general areas of expertise such as testing, front-end and project management. There are fewer inquiries and longer sales cycles

In Stockholm and the east, demand is high even though requirements and competition have increased.

The Gothenburg market and the west have been characterized by continued restraint and a more wait-and-see market. The automotive sector continues to show weak signals. The major players remain cautious even though expectations for the future are becoming increasingly positive.

In the south, and especially Malmö, growth and signs of gradual recovery are visible, although there is increased caution among decision-makers and many customers are cautious.

General trends are that companies continue to optimize their resources with strict budgets and a focus on finding the right skills. Competition in the consulting market remains tough. A clear trend is that requirements specifications have increased and that clients are increasingly looking for consultants who can handle multiple roles in one. The market for IT consultants is changing with high demand for cutting-edge skills and value creation. Clear offerings and ROI focus are central.

AI and cybersecurity continue to be hot topics and there is still a high demand for AI specialists. Among the most in-demand skills are AI, business system skills, Data Science and Data Engineering. There is also a continued high demand for IT and Tech specialists, especially within specific roles and areas of expertise. According to TechSverige, approximately 18,000 new specialists will be needed annually until 2028.

Opportunities in the crisis

The recession is ongoing and economic growth remains low during the first half of this year as uncertainty about future economic developments holds back private consumption and corporate investment. The National Institute of Economic Research estimates that the recovery is expected to begin in the second half of this year, but uncertainty is high and there is a risk that the weak economic development will continue longer than forecast. The future is uncertain but full of potential. Adaptation is key and it is important to understand the challenges and opportunities of the market.

Birgitta Hedegård, VD