Swedish Q2 GDP Growth Strongest Since 2010


The Swedish economy advanced 1.7 percent on quarter in the three months to June 2017, beating market expectations of 1 percent and following an upwardly revised 0.6 growth in the previous period, the preliminary estimate showed. It was the strongest pace of expansion since the last quarter of 2010, mainly boosted by fixed investment and household consumption.

Gross fixed capital formation jumped 3.8 percent after rising by 2.8 percent in Q1 2017; and household consumption went up 1.1 percent, faster than a 0.6 percent gain in the previous period. Also, changes in inventories contributed 0.3 percentage points to the growth. Meanwhile, general government expenditure stalled after contracting by 0.2 percent in the previous quarter. Exports rebounded 0.7 percent, following a 0.2 percent drop in Q1; and imports also increased 0.7 percent, easing from a 0.9 percent advance in the previous period.

On the production side, market production of goods and services increased by 1.7 percent (0.7 percent in Q1). Production of goods increased by 3 percent (1.1 percent in Q1) and service-producing industries grew by 1.7 percent (1 percent in Q1). Employment measured as the total number of hours worked rose by 0.8 percent, and the number of persons employed increased by 0.6 percent.

Year-on-year, the GDP advanced 4 percent, also beating market consensus of 2.8 percent and following an upwardly revised 2.3 percent growth. It was the strongest pace of expansion since the last quarter of 2015.

Statistics Sweden | Joana Ferreira | joana.ferreira@tradingeconomics.com
7/28/2017 9:57:14 AM