Sweden: GDP rebounds in Q2 on improvements in the domestic economy
July 30, 2014
In the second quarter, the economy grew 0.2% over the previous quarter in seasonally- and working-day adjusted terms according to data released on 30 July. The figure marked a turnaround from the 0.1% contraction registered in Q1, but fell short of the 0.6% expansion the market had expected. On an annual basis, the economy grew 1.9%, which was a tick above the 1.8% expansion in Q1.
Q2’s positive result came on the back of an improvement in most of the components of the domestic economy. Private consumption accelerated to a 1.0% expansion (Q1: +0.6% quarter-on-quarter), while government spending rebounded to a 0.3% increase (Q1: -0.2% qoq). In contrast, fixed investment swung from the 1.3% rise recorded in Q1 to a 0.8% contraction in Q2.
On the external side of the economy, exports of goods and services slowed from 0.6% growth in Q1 to a meager 0.1% increase in Q2. Imports decelerated to a 0.8% increase in the second quarter (Q1: +1.7% qoq). 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 0.3 percentage points in Q2.
Author: Carl Kelly, Economist