Sweden: Economic growth accelerates in Q3
The economy expanded 1.8% in the third quarter of 2021 in seasonally-adjusted quarter-on-quarter terms, according to preliminary figures released by Statistics Sweden. The result was above the 0.9% rise clocked in Q2 and came in above market expectations. In calendar-adjusted annual terms, GDP rose 4.7% in the third quarter, slowing from the 9.5% year-on-year increase recorded in Q2 as the favorable base effect reduced.
Although details of the release are still pending, the quarterly acceleration likely came on the back of improving household consumption and robust business and consumer confidence, as well as strengthening demand dynamics both domestically and externally. This will have come despite supply-side disruptions and labor shortages, with the pandemic continuing to provide significant uncertainty amid outbreaks of the Delta variant in key international economies.
A more comprehensive breakdown of Q3 GDP will be released on 29 November.
Regarding the outlook, Morten Lund, economist at JPMorgan, commented:
“Looking ahead, we expect GDP to increase by 3.5% qoq saar, in the fourth quarter. The slowdown compared to the third quarter constitutes a normalization of consumption patterns, continuing global supply chain disruptions and a loss of growth momentum going into the fourth quarter. Still, the growth rate is above potential as underlying demand continues to be solid.”