Sweden: GDP sees acceleration in Q2
July 30, 2015
In the second quarter, the economy grew 1.0% over the previous quarter in seasonally- and working-day adjusted terms, according to data released on 30 July. The figure marked a solid acceleration compared to the 0.4% expansion tallied in Q1. The reading was the highest since Q1 2013 and surprised analysts on the upside, who had been expecting a 0.7% increase. The tally was the result of an overall improvement in both domestic demand and the external sector. On an annual basis, the economy grew 2.9%, slightly above the 2.6% expansion registered in Q1.
Domestically, private consumption recorded a 0.6% expansion in Q1, up from a flat reading recorded in Q1 (previously reported: +0.1% qoq). Fixed investment inched up from a 0.4% contraction in Q1 to a 0.3% decrease in Q2, although these figures are down significantly from the 2.8% increase seen in Q4 2014. Government spending also accelerated to a 0.6% increase in Q2 (Q1: +0.1% qoq).
On the external side of the economy, exports of goods and services saw a healthy recovery of a 0.9% expansion, contrasting the 0.8% contraction in Q1. Imports also improved, although remained in contractionary territory, falling 0.4% in Q2 (Q1: -2.1% qoq). As a result, the external sector’s net contribution to overall economic growth inched up from plus 0.5 percentage points in Q1 to plus 0.6 percentage points in Q2.
Author: Robert Hill, Economist