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Sweden’s economy didn’t contract after all in the second quarter, revised data show, providing some support to the central bank’s plans to raise interest rates toward the end of the year.
Gross Domestic Product grew 0.1% from the first three months of the year, according to Statistics Sweden. That was revised from a July reading showing a 0.1% contraction. But the annual data for the largest Nordic economy was revised down to 1.0% from 1.4%.
- Sweden’s trade-dependent economy has been losing momentum amid a trade dispute between the world’s biggest economic powers and uncertainty concerning the U.K.’s exit from the European Union.
- The report on Friday showed exports were unchanged in the quarter, consumer spending was up 1.1% and investments declined 1.0%.
- Sweden’s central bank has so far bet that the economy won’t slide into a recession. Policy makers last week stuck to a plan to tighten toward the end of the year, exiting almost half a decade of negative rates.
- Data earlier this week showed a drop in all of the Riksbank’s core measures of inflation, raising speculation that the world’s oldest central bank will need to drop its tightening bias already in October.
- The statistics agency revised the first and second quarter nominal growth figures lower by 0.4 percentage point and 0.3 percentage point, respectively. Friday’s 2Q GDP calculation was published along with a general review of national accounts data going all the way back to 1993.
- The krona slid 0.14% to 10.6625 per euro as of 09:46 a.m.
- For more details, see this table
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