Sweden Economic Activity Falls to 1-Year Low

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.

The Swedish economy rose 0.9% month-on-month in May 2026, following an upwardly revised 0.6% expansion in the previous month, marking the third consecutive month of GDP growth. “With positive figures for May we have now seen three months of continuous growth in the Swedish economy. The main explanation to the uptick this month came from higher production among service producing industries where information and communication showed particularly strong growth figures. Stronger net exports concerning goods, largely explained by a downturn in imports concerning goods, also contributed to overall GDP growth," as stated by Mattias Kain Wyatt, economist at Statistics Sweden. On a yearly basis, the economy grew 3.9% in May, accelerating from an upwardly revised 2.6% expansion in April.