The Swedish economy shrank unexpectedly during the second quarter, compared to the previous quarter, according to preliminary figures from Statistics Sweden.
Swedish GDP fell by 0.1 per cent during the second quarter, compared to the first. And compared to last year’s quarter growth was 1.4 per cent, which was a weaker development than most had expected.
The Riksbank had forecast growth of 0.1 per cent on the first quarter and 1.8 per cent at an annual rate. Nordea’s economists had forecast 0.2 per cent and 1.9 per cent respectively and SEB’s forecast was for 0.4 per cent and 2.1 per cent.
“The biggest difference was that investments fell slightly more than we had expected,” says SEB economist Olle Holmgren. As well as investments, net exports were a contributing factor. Exports fell by 0.3 per cent while imports fell 0.5 per cent.
Holmgren says, “It looks fairly weak ahead. This is a worrying sign for the Swedish economy. It confirms that growth is slowing.”
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