The country's vast forests of spruce, pine and other softwoods supply a highly-developed sawmill, pulp, paper and finished-wood-product industry. Despite high domestic consumption, Sweden exports about 60% of its forest products.

Cheap hydropower was a major factor in Sweden's industrial development. Today around 15% of the country's energy supply comes from its hydro-electric plants, many of them on the main northern rivers. Over 40% of energy consumed in Sweden comes from imported oil, 7% from imported coal and coke. Sweden's twelve nuclear reactors provide over 15% of total energy or almost 59% of electrical energy. The rest of the energy supply comes from biofuels, peat, waste heat, etc. After an advisory referendum in 1980, Parliament decided that the use of nuclear power should be phased out by 2010. That does not appear to be the end of the matter, however, for the subject is one which continues to give rise to debate.