Sweden: Preliminary data shows economy slumped at record pace in Q2
August 5, 2020
The economy contracted 8.6% in the second quarter of 2020 from the previous quarter in seasonally-adjusted terms, contrasting the 0.1% increase in the first quarter but broadly in line with market analyst expectations, according to preliminary figures from Statistics Sweden.
In calendar-adjusted annual terms, the economy shrank 8.2% in Q2 2020, contrasting the 0.4% expansion in Q1 2020. Despite the heavy contractions in Q2, they were less severe than many of those in Europe: Eurozone GDP slumped a seasonally-adjusted 12.1% in Q2 compared to the previous quarter.
In quarter-on-quarter seasonally-adjusted terms, the decrease in Q2 was the fastest since at least 1980. It was driven by a fall in exports of goods and services, in addition to weaker private consumption, according to a statement by Statistics Sweden. A more comprehensive breakdown of the Q2 reading will be available when new data is released on 28 August.
Author: Edward Gardner, Economist