Sweden: GDP growth accelerates in Q2; moderates markedly from preliminary estimate
Underlying momentum strengthened in the second quarter of 2022, as GDP expanded 0.9% on a seasonally-adjusted quarter-on-quarter basis, accelerating from the 0.2% growth tallied in the first quarter. However, this was down markedly from the 1.4% increase reported in the preliminary estimate. On an annual basis, economic growth held steady at 4.1% between Q1 and Q2.
Domestically, the quarterly improvement was spearheaded by private consumption, which clocked a sequential 1.6% expansion during the second quarter, improving from the flat reading recorded in the prior three months. The result should have been supported by a 0.9% increase in employment during the second quarter, which should have helped to offset pressure on household purchasing power as inflation accelerated. Additionally, fixed investment growth accelerated to a seasonally-adjusted quarter-on-quarter 3.3% in Q2, up from the previous quarter’s 1.2% increase. Lastly, the decline in government spending held steady at the prior quarter’s 3.1% in Q2.
The external sector detracted from overall growth. Growth in exports of goods and services accelerated to 1.1% in Q2 (Q1: +0.7% s.a. qoq). Conversely, growth in imports of goods and services moderated to 2.5% in Q2, down from the prior quarter’s 3.3%. Consequently, the external sector detracted 0.5 percentage points from the overall reading, compared to a 1.0 percentage point detraction in the prior quarter.