Sweden Monthly GDP Contracts at Faster Pace

The Swedish economy contracted 1.1% month-on-month in January 2026, deepening from an upwardly revised 0.7% decline in December and marking the steepest contraction since February 2025. “The Swedish economy started the new year with falling production in manufacturing and construction, as well as in general government,” said Neda Shahbazi, economist at Statistics Sweden. On a yearly basis, the economy expanded 0.6% in January, slowing from an upwardly revised 1.4% gain in December and recording the weakest yearly growth since March 2025.

The Swedish economy contracted by 0.6% month-over-month in December 2025, reversing an upwardly revised 0.5% growth in the previous month, preliminary estimates showed. The latest figure also marked the sharpest decline since July. "Following strong figures for November Swedish economic activity contracted in the last month of the year. These results show us that the period of growth that we have seen since the second quarter largely continued through the remainder of 2025, if now at a somewhat more modest rate. Figures for all four quarters also give us a first preliminary estimate of annual GDP-growth for 2025 at 1.4 percent", says Mattias Kain Wyatt, economist at Statistics Sweden. For the fourth quarter as a whole, GDP increased 0.2% compared with the preceding quarter. On a yearly basis, the economy advanced by 0.9% in December, marking the softest growth since March and easing from a downwardly revised 2.2% expansion in the preceding period.

The Swedish economy grew by 0.9% month-over-month in November 2025, recovering from a 0.3% contraction in the previous month, preliminary estimates showed. This marked the first monthly growth in three months. “After two weaker months, Swedish economic activity turned around in November, with growth in the business sector's service industries offsetting weaker developments among goods producers and public authorities”, says Asuman Erenel, economist at Statistics Sweden. On a year-on-year basis, the GDP expanded by 2.7% in November, accelerating from an upwardly revised 2.2% growth in the preceding period.