Sweden: Economic growth picks up in Q2 on strong household consumption
September 18, 2014
In the second quarter, the economy grew 0.7% over the previous quarter in seasonally- and working-day adjusted terms, according to revised data released on 18 September. The figure marked an improvement over both the 0.2% increase reported in the preliminary estimate and the 0.1% expansion registered in Q1. On an annual basis, the economy grew 2.6%, which was revised upward from the 1.9% expansion reported in the flash estimate and an improvement over the 1.7% increase recorded in Q1. The readings for both annual and quarterly figures reflect revisions in accordance with the updated ESA 2010 regulation.
Q2’s positive result came mainly as a result of an improvement in domestic demand. Growth in private consumption accelerated from 0.5% in Q1 to 1.3% in Q2, which was the strongest quarterly growth since Q3 2010. In addition, government spending picked up from a flat reading in the first quarter to a 0.5% expansion in the second. Fixed investment increased 0.3% (Q1: +2.0% quarter-on-quarter).
On the external side of the economy, growth in exports of goods and services accelerated from 0.2% in Q1 to 0.8% in Q2. In addition, imports of goods and services rose 1.4% over the previous quarter, which was up from the 1.2% rise recorded in the first quarter. As a result, the external sector’s net contribution to overall economic growth edged up from minus 0.4 percentage points in Q1 to minus 0.2 percentage points in Q2.
Author: Carl Kelly, Economist