Sweden’s economy is in technical recession, with gross domestic product (GDP) contracting by 0.1% in the third quarter compared to the second quarter, the latest preliminary data shows. It became. This decline follows the recession recorded in the second quarter, marking the second consecutive quarter of economic decline and meeting the technical definition of a recession. Compared to the previous year, GDP also decreased slightly by 0.1%.
The numbers announced today came as a surprise to analysts who had expected growth to be 0.4% from the second quarter to the third quarter, an increase of 0.7% year-on-year. Ta. The Office for Statistics has indicated that these figures may be adjusted when final data is published.
GDP in September recorded a slight increase of 0.1% compared to the same month last year, but decreased by 0.4% compared to August. According to the Statistics Bureau, the negative growth in the third quarter was due in part to poor performance in July, and when combined with September data, the overall growth was negative compared to the second quarter.
Sweden’s lackluster economic performance over the past year has led the central bank, the Riksbank, to cut interest rates at its September meeting. The National Bank is likely to lower its benchmark interest rate in its two remaining meetings this year, possibly including a 0.5 percentage point cut, and perhaps one or two more cuts in the first half of 2025. I expected it to happen.
In a note, Swedbank commented on the slowdown in the Swedish economy and suggested that recent data could increase the likelihood of a further significant rate cut in November. They maintained their forecast for a 50 basis point cut at the next Riksbank monetary policy meeting.
Reuters contributed to this article.
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