History of Sweden (1991–present)

After a period of rapid growth and unprecedented prosperity during the late 1980s, by 1990 the Swedish economy overheated, and after a controversial bill freezing salaries and banning strikes failed in the Riksdag, the social democratic government led by Prime Minister Ingvar Carlsson resigned in February 1990. At this time the respected Finance Minister Kjell-Olof Feldt left the government in protest over what he saw as irresponsible economic policies. Carlsson soon formed a new government, but by the time of the general election in September 1991 the economy was in free fall, and with rapidly rising unemployment, the social democrats received the smallest share of votes in sixty years (37.7%), resulting in the loss of office to the opposition, a centre-right coalition led by Carl Bildt.

Around the same time a convicted murderer and bank robber known as Lasermannen ("the Laser Man") shot eleven and killed one person in an attempted serial killing, which scared Swedish immigrants, whom he targeted.

Göran Persson of the Social Democrats became Prime Minister in 1996, a post he would retain until after the 2006 elections which would allow for the return of the centre-right coalition parties to government as part of the Alliance.

The 2000s and 2010s, saw the Social Democratic party's further loss of influence, though it would return to government in 2014 under Stefan Löfven. The 2010s were politically turbulent; the European migration crisis saw the rapid rise of the right-wing populist Sweden Democrats, who would eventually become the balancing power between the two main blocs of left and right which had long been the dominant dynamic within Swedish politics. Opposition toward the Sweden Democrats from the traditional political parties caused lengthy government formation processes, especially following the 2018 general election.