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.
Author: Cecilia Simkievich, Economist