"President Abbas welcomes Sweden's decision," Nabil Abu Rudeina told AFP, saying the Palestinian leader described the move as "brave and historic".
Abu Rudeina claimed the move was linked to months of soaring tensions in occupied east Jerusalem, where Palestinians have clashed almost daily with Israeli police and where Israel has recently pushed ahead with plans to build another 3,600 settler homes, drawing international condemnation.
"This decision comes as a response to Israeli measures in Jerusalem," he said.
Abbas called for other countries to follow Sweden's lead.
Sweden is the first EU member state in western Europe to recognise Palestine.
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