The result is a repeat of the Group Stage meeting at last year's World Championship, though it was Sweden who went deeper into the tournament, finishing third, as the Canadians fell at the Quarter-final stage.
Canada were in front with under two-and-a-half minutes played after Robert Thomas carried the puck out of his own zone and into Swedish territory, where he squared it to Darnell Nurse, who quickly helped it across to give John Tavares a simple one-time finish on the left.
Less than a minute later, Sweden were given the chance to make a quick response after a tripping call against Denton Mateychuk, but they couldn't profit from the powerplay. With eight minutes left in the opening period, Tre Kronor had the puck in the Canadian net, only to have the goal disallowed.
A shot from the blue line from Robert Hagg was deflected in by Ivar Stenberg, but following a lengthy video review, the officials ruled the goal out as Stenberg's stick was high. A luckless few seconds then continued for Stenberg, as another video review found him guilty of cross-checking.
The Swedes survived that powerplay, but getting back to full strength was no help, as they went 2-0 down with 16 minutes on the clock. Morgan Rielly and Gabriel Vilardi both had chances in quick succession before the puck was finally bundled in by Ryan O'Reilly.
Neither side could profit from a powerplay each side of the first break, before Sweden got back into the match nine minutes into the second period. After a sustained attack, Jack Berglund unleashed Jacob Larsson on the left and he set himself before finishing well.
Less than three minutes later, the scores were level again, as Zach Whitecloud was called for tripping, and this time Sweden did capitalise with the extra man within seconds, as Oliver Ekman-Larsson squared to Lucas Raymond, who pulled out a near-identical finish to that of Larsson.
Parity only lasted for three minutes, as space opened up in the Swedish zone for Dylan Holloway to cut in from the right and pick his spot, but the Europeans hit back again soon after, as Linus Karlsson set the puck back for Mattias Ekholm to strike from the corner, as it found its way through the crowd for 3-3.
But that was as good as it got for Sam Hallam's side, who went behind again four minutes into the third, when an inch-perfect Porter Martone pass across the Swedish goal found Connor Brown, who tucked it past Magnus Hellberg.
And Martone was at it again with seven minutes to play, sending Dylan Cozens away to squeeze home a fifth for Canada despite pressure from the defence. That goal all but killed off Sweden's comeback chances, as Canada took a 5-3 win.
The Canadians will look to maintain their strong start when they face Italy on 16th May, while Sweden are back in action on the 17th against Denmark.
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