Sweden: Economy expands strongly according to advanced Q3 data
November 5, 2020
The economy expanded 4.3% in the third quarter of 2020, in quarter-on-quarter seasonally-adjusted terms, according to preliminary figures released by Statistics Sweden. The result contrasted the 8.6% contraction suffered in Q2, but came in slightly below market expectations. In calendar-adjusted annual terms, the economy shrank 3.5%, softening from the 7.8% plunge recorded in Q2.
The quarterly upturn—the largest recorded since at least 1990—was predominantly driven by a rise in exports of goods and services, and indicates that the economy has endured the coronavirus crisis in markedly better fashion than the majority of its Eurozone peers.
A more comprehensive breakdown of Q3 GDP will be released on 27 November.
Regarding the outlook, Pernilla Johansson, economist at Swedbank, commented:
“As we enter the chillier part of the year, the coronavirus pandemic has once again taken hold of Sweden, even though the economy has fared better this year than we previously anticipated. The GDP drop this year stays at 3.5%. The rising spread of the virus is increasing the uncertainty about the strength of the recovery, and there are already ominous signs that activity has begun to weaken. We have, therefore, revised down the outlook for next year to just over 2%. A more marked recovery will be delayed until the second half of 2021, and growth in 2022 is expected to be just over 3%.”
Author: Stephen Vogado, Economist