Debate: The Economic Impact of Refugee Immigration in Sweden

A report from the National Institute of Economic Research (KI) clearly confirms that refugee immigration continues to be an economic cost for Sweden, a cost that cannot be ignored or dismissed with rhetorical flourishes, writes Oscar Sjöstedt (SD).

Response. Daniel Suhonen and Tony Johansson attempt to beautify reality by mixing different immigrant groups, but the KI report is clear: refugee immigration is and remains a significant cost for Sweden.

KI's report shows that refugees have a negative net contribution of 25,000 SEK per person per year, amounting to a lifelong cost of approximately 1 million SEK. This is not an insignificant figure. It is a central conclusion that clearly indicates that refugee immigration poses a substantial economic burden on public finances.

It is true that other foreign-born individuals, especially highly skilled labor immigrants, contribute a positive net contribution. However, mixing these groups, as Suhonen and Johansson do, is misleading. The report, on the contrary, makes it clear that the difference between highly skilled labor immigrants and refugee immigrants is crucial for the economic effects.

Negative Net Contribution

The report also shows that refugees have had a negative net contribution throughout the period 1983–2022. In recent years, the net contribution of foreign-born individuals has improved somewhat, but the fundamental cost consequences of refugee immigration remain. The positive results for other foreign-born individuals are due to increased labor immigration, not any miraculous change in refugees' contribution to Sweden's economy.

Moreover, KI's calculations are limited and only cover direct transfers and public expenditures. When other socio-economic effects are also considered, such as the strains on welfare and the justice system, as well as challenges in schools, an even clearer negative overall picture of the consequences of refugee immigration emerges.

Among other things, reports from the National Board of Health and Welfare and the Swedish National Agency for Education show that foreign-born individuals more often need financial assistance and that students with foreign backgrounds generally have poorer school results, which ultimately negatively affects the economy.

In short: KI's report proves us right. It clearly confirms that refugee immigration continues to be an economic cost for Sweden, a cost that cannot be ignored or dismissed with rhetorical flourishes. It is therefore absolutely necessary for Sweden to pursue a strict and responsible immigration policy.

By Oscar Sjöstedt (SD)

Economic-Political Spokesperson