Sweden GDP

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Sweden: Economic activity decelerates in Q3 on the back of sluggish private consumption

January 7, 2015

In Q3 2014, the economy grew 0.3% over the previous quarter in seasonally and working-day adjusted terms, according to revised data released on 7 January. The figure marked a slowdown compared to the 0.5% rise tallied in Q2. On an annual basis, the economy grew 2.1% in Q3, which was slightly down from the 2.4% expansion tallied in Q2.

Q3’s quarterly deceleration mainly resulted from a notable slowdown in domestic demand, particularly in private consumption. Growth in private consumption fell from 1.1% in Q2 to a flat reading in Q3. In addition, government spending slowed down from a 0.6% rise in Q2 to a 0.4% increase in Q3. Conversely, fixed investment accelerated to a 1.1% increase from the 0.6% expansion tallied in Q2.

On the external side of the economy, growth in exports of goods and services accelerated slightly from 0.5% in Q2 to 0.7% in Q3. Imports of goods and services rose 1.3% in Q3, which was down from the 1.8% increase registered in the previous quarter. As a result, the external sector’s net contribution to overall economic growth edged up from minus 0.5 percentage points in Q2 to minus 0.2 percentage points in Q3.

The Central Bank expects economic growth to reach 3.0% in 2015. FocusEconomics Consensus Forecast panelists expect the economy to grow 2.5% in 2015, which is unchanged from last month’s estimate. For 2016, the panel projects that the economy will expand 2.8%.


Author:, Economist

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Sweden GDP Q3 2014 1

Note: Quarter-on-quarter changes of seasonally adjusted GDP and year-on-year variation in %.
Source: Statistics Sweden (SCB) and FocusEconomics Forecast.


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