Sweden GDP Growth Strongest in Over 2 Years

The Swedish economy expanded 1.4% quarter-on-quarter in the three months to June 2026, sharply rebounding from a 0.2% contraction in the previous period and exceeding market expectations of a 0.7% growth, according to preliminary estimates. It marked the sharpest quarterly expansion since the first quarter of 2024, reflecting stronger economic activity in the earlier months of the quarter despite a modest decline in June. Mattias Kain Wyatt of Statistics Sweden said June's pullback followed three consecutive months of growth and that overall economic activity remained well above year-earlier levels. On an annual basis, GDP grew 2.8%, accelerating from 2.0% in the previous quarter, and marking the fastest annual expansion since the fourth quarter of 2024.

The Swedish economy contracted by 0.2% quarter-on-quarter in the first quarter of 2026, confirming preliminary estimates and exceeding market expectations of a 0.1% fall. This followed a revised 0.8% expansion in the previous quarter and marked the first contraction in a year. Government spending declined (-2.1% vs 2.7% in Q4), while gross fixed capital formation also dropped (-2.3% vs 4.5%), largely due to lower investment in buildings and constructions. Net trade also weighed on GDP, as imports (2.5% vs 0.2%) rose more than exports (2.2% vs -0.8%). Meanwhile, household consumption increased (0.6% vs 0.6%), driven by spending on transport and housing. Changes in inventories contributed positively, with an increase in industrial stockpiles. On an annual basis, GDP rose by 2%, revised up from an initial estimate of 1.6% but falling short of market forecasts of a 2.3% increase. The yearly growth matched the pace recorded in the previous quarter.

The Swedish economy contracted by 0.2% quarter-on-quarter in the three months to March 2026, missing expectations of a 0.1% expansion and reversing a 0.5% growth in the previous period. This marks the first economic contraction in a year, weighed down by weaker activity in January and February. However, activity increased in March and is now back at a level similar to that seen at the end of last year, according to Neda Shahbazi, economist at Statistics Sweden. On an annual basis, GDP expanded by 1.6%, the softest growth in a year and below both market expectations and the previous quarter’s 2.1% increase.