Sweden Q3 GDP Growth Rate Slows but Beats Forecasts

Sweden’s economy grew 0.4% quarter-on-quarter in Q3 2026, easing sharply from 1.6% in Q2, which marked the fastest expansion since Q1 2024, preliminary data showed. Still, growth exceeded market expectations of 0.3%. According to Neda Shahbazi, an economist at Statistics Sweden, stronger output in August supported quarterly growth, offsetting a decline in activity in September. On an annual basis, the economy expanded 2.8%, slowing from 3.3% in Q2 and falling short of forecasts of 2.9%.

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.