Swedish Q2 GDP Growth Beats Forecasts


The Swedish economy advanced 1 percent on quarter in the three months to June 2018, easily beating market expectations of 0.5 percent and following an upwardly revised 0.8 growth in the previous period, a preliminary estimate showed. It was the strongest pace of expansion since the second quarter of 2017, mainly boosted by household consumption, government spending and net trade.

Household consumption rose 0.9 percent in the second quarter of the year (vs 0.8 percent in Q1), and government spending increased 0.2 percent (vs unchanged in Q1). In addition, net trade contributed positively to GDP growth as exports went up 0.5 percent (vs -0.2 percent in Q1) while imports fell 0.1 percent (vs 0.6 percent in Q1); and changes in inventories added 0.3 percentage points to the growth. By contrast, fixed investment contracted 0.2 percent in the three months to June, after a 2.5 percent jump in the previous period.

On the production side, market production of goods and services increased by 1.2 percent, the same pace as in the first quarter. Production of goods increased by 0.7 percent (vs 0.8 percent in Q1) and service-producing industries grew by 1.5 percent (vs 1.4 percent in Q1). Employment measured as the total number of hours worked rose by 1 percent, and the number of persons employed increased by 0.3 percent.

Year-on-year, the GDP advanced 3.3 percent in the second quarter, the same pace as in the previous period and also beating market consensus of 2.6 percent. It remained the strongest pace of expansion since the second quarter of 2016.

Swedish Q2 GDP Growth Beats Forecasts


Statistics Sweden | Joana Ferreira | joana.ferreira@tradingeconomics.com
7/30/2018 7:49:32 AM