Swedish Economy Grows 0.2% in Q4

The Swedish economy advanced 0.2% quarter-on-quarter in the fourth quarter of 2025, slowing from a 1.1% growth in the third quarter and coming in below market forecasts of a 0.6% expansion, preliminary data showed. Mattias Kain Wyatt, an economist at Statistics Sweden, said that the growth period observed since the second quarter largely continued through the remainder of 2025, albeit at a more modest pace. He added that figures for all four quarters showed a first preliminary estimate of full year GDP growth at 1.4% in 2025. On an annual basis, GDP rose 1.8%, easing from a 2.6% increase in the previous period and falling short of market expectations for a 2.2% growth.

The Swedish economy expanded 1.1% quarter-on-quarter in the third quarter of 2025, confirming the preliminary estimate, following an upwardly revised 0.8% growth in the second quarter. This was the strongest growth since the first quarter of 2024, driven by increases in household consumption (0.8% vs 0.4% in Q2) and government spending (0.3% vs 0.2%). Net trade also contributed to the economic upturn, as export growth (1.8% vs 1.3%) outpaced that of imports (0.8% vs 2.9%). Meanwhile, gross fixed capital formation continued to rise, albeit at a slightly slower rate (1.9% vs 2.0%). On an annual basis, GDP increased 2.6%, revised up from the initial estimate of 2.4%, after an upwardly revised 1.9% growth in the previous quarter.

The Swedish economy expanded 1.1% quarter-on-quarter in the three months to September 2025, accelerating from a 0.5% growth in the previous period, preliminary estimates showed. This marks the fastest economic expansion since the first quarter of 2023 and exceeded the expected 0.8% growth. Mattias Kain Wyatt, an economist at Statistics Sweden, noted that the faster growth was largely fueled by robust performance in August. On an annual basis, GDP grew 2.4%, beating forecasts of a 1.6% expansion, picking up from a 1.4% growth in the prior quarter, and marking the steepest expansion since the fourth quarter of 2021.