Swedish election in dead heat as anti-immigration far right loses ground

Sweden's leftwing opposition bloc held a razor-thin lead in Sunday's general election with half of the votes counted, with the far right seen losing ground.

With more than 50 per cent of votes counted, four opposition parties led by Social Democratic leader Magdalena Andersson, had a narrow lead with 49.3 per cent against 49.1 per cent for Prime Minister Ulf Kristersson's right-wing alliance, which includes the anti-immigration Sweden Democrats.

In a big surprise, the anti-immigration Sweden Democrats lost support for the first time since it entered parliament in 2010, with 17.7 per cent of the vote, down from 20.5 per cent in 2022.

"Of course it's a bit of a disappointment that we are not the second-biggest party anymore in these polls. But it's still not finished, it can still change," Julia Kronlid, a Sweden Democrat member of parliament, told Agence France-Presse just after exit polls had showed the party retreating.

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In the event of a left-wing victory, the four parties would face tough negotiations to form a government as they are splintered ideologically.

"I am confident that Magdalena is a skilled negotiator, and that she has a plan to make it work ... It might take a bit of time, but we will get a government led by Magdalena," Emilia Wikstrom Melin, a 40-year-old union analyst, told AFP at the Social Democrats' watch party.

Kristersson has headed a minority coalition backed by the Sweden Democrats for four years, giving the far-right influence over policy in exchange for support in parliament.

Kristersson promised the Sweden Democrats key cabinet posts if the right wing wins.

"It would be really tough for the country to go back to four years of the Social Democrats in power," Sweden Democrat supporter Bjorn Englen told AFP.

Throughout the campaign, opinion polls gave a comfortable lead to the left-wing opposition, but the gap narrowed to a dead heat in the final days.

Much of the campaign focused on healthcare and helping struggling households cope with rising costs.

Andersson, the first woman to head Sweden's government in 2021-22, is a staunch defender of Sweden's famed welfare state.

Her party ruled the Scandinavian country for most of the 20th century and remains Sweden's largest, though early results showed the party heading for its worst result in modern history.