Sweden: GDP decelerates in Q3
November 28, 2014
In the third quarter, the economy grew 0.3% over the previous quarter in seasonally- and working-day adjusted terms, according to data released on 28 November. The figure marked a slight deceleration compared to the 0.5% expansion tallied in Q2, but overshot the 0.2% rise the markets had expected. On an annual basis, the economy grew 2.1% in Q3, which was below the 2.4% expansion registered in Q2.
Q3’s deceleration came on the back of a moderation in domestic demand growth. Private consumption posted a flat reading (Q2: +1.1% quarter-on-quarter), while government spending decelerated to a 0.4% increase (Q2: +0.6% qoq). In contrast, fixed investment accelerated from a 0.6% rise in Q2 to a 1.1% increase in Q3.
On the external side of the economy, exports of goods and services inched up from a 0.5% rise in Q2 to a 0.7% increase in Q3. Imports decelerated to a 1.3% increase in the third quarter (Q2: +1.8% qoq). As a result, the external sector’s net contribution to overall economic growth edged up from minus 0.5 percentage points in Q2 to minus 0.2 percentage points in Q3.
Author: Cecilia Simkievich, Economist