Sweden: Economic growth beats expectations and maintains momentum in Q3 according to advanced data
October 28, 2022
The economy fared well in the third quarter of 2022 and defied fears of a contraction. GDP expanded 0.7% in seasonally adjusted quarter-on-quarter terms according to preliminary figures released by Statistics Sweden. The result matched the sequential growth recorded in the prior quarter, and beat market expectations of a 0.1% contraction. Meanwhile, in calendar-adjusted annual terms, GDP grew 2.6% in the third quarter, below the prior quarter’s 4.0% increase.
Although details of the release are still pending, the lowest unemployment rate since Q2 2019 in the third quarter should have shielded households somewhat from elevated price pressures, contributing to the robust quarterly performance in turn. That said, despite the upbeat data for Q3, a growth slowdown might have only been delayed. Economic sentiment was more pessimistic in October, while consumer sentiment plunged to its lowest since January 1993, boding ill for private consumption. Additionally, the economy’s performance in Q3 will likely provide room for the Riksbank to continue its aggressive monetary policy tightening at its upcoming 23 November meeting in order to cool both inflation and growth.
A more comprehensive breakdown of Q3 2022 GDP will be released on 29 November.
Author: Marta Casanovas, Economist