Sweden: GDP rebounds at a stronger-than-previously-reported pace in Q1
A second national accounts release revealed underlying momentum strengthened at a brisker pace than initially reported: The economy bounced back and grew 0.6% on a seasonally adjusted quarter-on-quarter basis in the first quarter, contrasting the 0.5% contraction logged in the fourth quarter of last year. The result marked an improvement from the 0.2% growth reported in the preliminary release.
Domestically, fixed investment spearheaded the quarterly improvement; it grew 0.5% in Q1, swinging from a 0.8% contraction in the prior quarter. Meanwhile, government spending growth was steady at Q4’s 0.5%. Less positively, private spending dropped at a more pronounced rate of 1.2% on a seasonally adjusted quarter-on-quarter basis in Q1, deteriorating from the 0.2% contraction tallied in Q4. Household budgets were likely hurt by still-elevated price pressures in Q1.
On the external front, exports of goods and services growth sped up to 1.2% in Q1 (Q4 2022: +0.1% s.a. qoq). In addition, imports of goods and services bounced back, growing 0.7% in Q1 (Q4 2022: -1.3% s.a. qoq). Consequently, the external sector contributed 0.3 percentage points to the overall reading, deteriorating from the prior period’s 0.7 percentage point addition.
On an annual basis, GDP also bounced back, growing 0.8% in Q1, contrasting the previous period’s 0.2% decrease.