Sweden Q2 GDP Growth Revised Higher

The Swedish economy expanded 1.6% quarter-on-quarter in the second quarter of 2026, revised up from an initial estimate of 1.4%, following a revised 0.1% contraction in the previous quarter. This marked the strongest quarterly growth since the first quarter of 2024, largely supported by a strong rebound in gross fixed capital formation (3.5% vs -2.2% in Q1), with investments in machinery and equipment and weapons systems contributing most to the increase. Household consumption also went up (0.9% vs 0.6%), mainly due to higher spending on food and furniture, while government spending recovered (0.7% vs -2.2%). Net trade also contributed positively to overall growth, as exports increased 1.0%, far outpacing the 0.1% rise in imports. On an annual basis, GDP grew 3.3%, accelerating from a 2.0% rise in the first quarter and marking the fastest expansion since the fourth quarter of 2024.

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.