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It's an oversimplification to call Sweden "socialist". While it's true that Sweden has been ruled by the Social Democratic Party ("socialdemokraterna") for most of the 20th century, and without interruption from 1932 to 1976, there are several reasons which suggest Sweden is not socialist:
Sweden has had a strong free trade-orientation since the 19th century. The Swedish economy is small, specialized, open and dependent on exports, which has helped generated money for a generous welfare state.
Connected to this: Sweden has become very business-friendly. Entrepreneurship is openly encouraged in every possible way, which is why such a small country has spawned Skype, Spotify, Minecraft...
Sweden's defense relies on NATO. Sweden isn't a member of NATO formally but that doesn't change the fact that Sweden depends upon the United States for its security. In an EU context, Sweden is very vocal in its criticisms against human rights violations in states such as Russia and China, compared to countries such as Italy or eastern European states.
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