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The Kungliga Flottan (Swedish Navy) at the time of World War I was the strongest permanent force in the Baltic. After the War, Sweden relying on the Versailles Peace Treaty and the League of Nations allowed its naval forces to decline. Even so, the Swedish Navy of the three services at the time of the War was the best equipped. The Swedes had four aging costal defense ships with big guns, an aging armored cruiser, and a mine criser. The newest ship was the Gotland, a seaplne cruiser. There were also 19 destroyers. Two modern cruisers were built, but not commissioned until after the War. The destroyer fleet was expanded to 28 ships by the end of the War. The Soviets in contrast built up a powerful naval force, although it was not a major Soviet priority. And the Germans also after the NAZIs seized power built up a substantial naval force. Swedish attitudes toward defense changed with the outbreak of World War II and the Winter War. The Goverment initiated a crash naval building program. They ordered ship designs from Italy which they finally concluded were inadequate for the conditions in northern waters. The Swedish Navy had some substantial ships including heavily armored cruisers and destroyers. The problem for the Swedes besides having a limited industrial base was the enclosed Baltic waters. All of the Baltic was covered by German or Soviet aircraft and the obsolete Swedish airforce was totlly incapable of providing needed air cover. Nor did the Swedish Navy have modern ASW sonar or radar. The limited ASW capability probably resulted in the disaster at the Musko Naval Base (1943).
Zatz. David. "Chrysler, Gun Maker: Bofors Guns of World War II".
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