Sweden: GDP accelerates in Q4, pushing 2014 growth to highest level in three years
February 27, 2015
In the fourth quarter, the economy grew 1.1% over the previous quarter in seasonally- and working-day adjusted terms, according to data released on 27 February. The figure marked an acceleration compared to the 0.5% expansion tallied in Q3, and was much stronger than the 0.3% rise the markets had expected. The acceleration was driven by stronger domestic demand and exports growth. On an annual basis, the economy grew 2.6% in Q4, which was above the 2.3% expansion registered in Q3.
Domestically, private consumption jumped to a 0.9% expansion in Q4 after having registered flat growth in Q3. Fixed investment picked up to a 2.7% increase (Q3: +1.7% quarter-on-quarter). In contrast, government spending moderated slightly to a 0.5% increase (Q3: +0.6% qoq).
On the external side of the economy, exports of goods and services accelerated from a 1.1% rise in Q3 to a 2.7% increase in Q4. Imports picked up to a 2.8% increase in the fourth quarter (Q3: +1.5% qoq). As a result, the external sector’s net contribution to overall economic growth swung from minus 0.1 percentage points in Q3 to plus 0.1 percentage points in Q4.
GDP expanded 2.1% in full year 2014, which marked the highest growth rate in three years.
Author: Carl Kelly, Economist