Sweden: Economic growth accelerates in second quarter
July 30, 2012
In the second quarter, GDP expanded 1.4% in seasonally and working-day adjusted terms, which was faster than the 0.9% increase seen in the first quarter (previously reported: +0.8% quarter-on-quarter). The reading represented the fastest pace of expansion observed since the last quarter of 2010. On an annual basis, the economy grew 2.2% over the same quarter last year, above the 1.6% rise seen in the first quarter. The acceleration in economic growth was mainly due to a higher contribution from the external sector, as exports grew 2.1% in the second quarter, up from the 1.3% expansion registered in the first. Simultaneously, imports rose 0.6% (Q1: +0.1% qoq). As a result, the external sector's net contribution to overall economic growth edged up from 0.6 percentage points in the first quarter to 0.8 percentage points in the second. On the domestic side, private consumption decelerated from a 1.1% expansion in the first quarter to a 0.4% rise in the second, while government spending rose 0.5% (Q1: +0.2% qoq). Gross fixed capital formation, on the other hand, swung from a 2.5% expansion in the first quarter to a 0.2% decline in the second.