Swedish Economic Activity Shrinks 0.2% in June

The Swedish economy expanded by 1.1% month-on-month in August 2026, recovering from a marginally revised 0.7% contraction in the previous month. This marked the sharpest expansion since March. “Swedish GDP grew in August following the weak development in July. The growth was relatively broad-based and mainly driven by increased household consumption as well as rising production among goods-producing industries,” Melker Pettersson Loberg, an economist at Statistics Sweden, said. On a yearly basis, GDP grew by 3.5% in August, the strongest in three months, and accelerating from an upwardly revised 2.7% expansion in the preceding period.

The Swedish economy shrank 0.8% month-on-month in July 2026, following a 0.2% contraction in the previous month. This marked the sharpest contraction since July 2025. “Economic activity in the Swedish economy continued to decrease for the second month in a row and is now back around the levels seen in spring before the strong growth numbers in May. Year-on-year economic growth, however, remains clearly above the historical average seen over the preceding decade,” said Mattias Kain Wyatt, economist at Statistics Sweden. On a yearly basis, GDP expanded by 2.5% in July, easing from an upwardly revised 2.9% expansion in the preceding period.

The Swedish economy shrank 0.2% month on month in June 2026, reversing a 0.9% expansion in the previous month and marking the first contraction in four months. "The Swedish economy contracted somewhat in June following three months of continuous growth. Those stronger figures in the preceding months led to levels of economic activity for both June and the second quarter as a whole that were noticeably above the levels seen in the corresponding periods of the preceding year," said Mattias Kain Wyatt, economist at Statistics Sweden. On a yearly basis, GDP expanded 2.4% in June, easing from a downwardly revised 3.8% expansion in May.