Sweden Economic Growth (Nominal GDP, ann. var. %)

Economic Growth in Sweden

The largest Nordic economy avoided a technical recession by a whisker in Q1; GDP expanded 0.2% quarter on quarter (Q4 2022: -0.4% s.a. qoq), a preliminary national accounts release revealed. The upturn was chiefly due to a robust economic performance in January that more than offset declining GDP in both February and March. Both the manufacturing and services PMIs revealed conditions deteriorated markedly through the latter month. Moreover, while business and consumer sentiment improved, they remained pessimistic throughout Q1, likely due to further rate increases from the Riksbank in February, boding ill for spending and investment ahead. Additionally, price pressures remained elevated in Q1; diminished purchasing power and softer nominal wage growth in the first two months of the year hurt private spending, with consumption falling 0.5% month on month in February.