Sweden: Second quarter economic growth revised downwards
September 14, 2012
In the second quarter, GDP expanded 0.7% in seasonally and working-day adjusted terms, which was half the previously estimated 1.4% expansion and mirrored the 0.7% rise registered in the first quarter. In addition, the reading was below market expectations that had GDP expanding 1.3%. On an annual basis, the economy grew 1.3% in the second quarter, which was a notch below the 1.4% rise seen in the first. Among expenditure components, export growth was revised the most, rising 0.7% in the second quarter (previously reported: +2.1% quarter-on-quarter). Simultaneously, imports were flat in the second quarter (previously reported: +0.6% qoq). As a result, the external sector's net contribution to overall economic growth fell from the 0.8 percentage points initially reported to 0.4 percentage points. On the domestic side, private consumption expanded 0.2% in the second quarter (previously reported: +0.4% qoq), while government spending added 0.3% (previously reported: +0.5% qoq). Gross fixed capital formation, on the other hand, fell 0.3% over the previous quarter (previously reported: -0.2% qoq). The Central Bank (Riksbank) expects economic growth to reach 1.5% in 2012 before accelerating to a 1.9% expansion in 2013.