The purpose of this research is to analyze Sweden’s economic growth between 1960 and 2008 to determine if Sweden did fall behind the leading European nations after the oil crisis 1973 and if so, investigate if the convergence theory and/or the market liberal theory can explain why Sweden were overtaken by other leading European nations. The research uses The World Bank’s statistics about nations historical GDP per capita and uses Statistics Sweden’s yearbooks about Sweden’s national expenses. The result supports the convergence theory since Sweden left the leading economic role 1960 and ranked sixth 2008 while Ireland who were eight in ranking 1960 passed Sweden and ranked fourth 2008. The result does not support the market liberal theory since the economic growth were affected beneficially by political- and economic regulations such as the devaluation of the currency, which helped Sweden’s economic growth to recover and in return helped it remain as a leading economic power.