Swedish Monthly GDP Shrinks the Most in 19 Months

The Swedish economy contracted by 0.7% month-on-month in September 2026, following an upwardly revised 1.2% growth in the previous month, which was the sharpest expansion since March. It was the fifth monthly contraction so far this year and the steepest decline since February 2025. "The Swedish economy contracted in September but increased in the third quarter as a whole due to strong growth in August", Neda Shahbazi, an economist at Statistics Sweden, said. On a yearly basis, GDP grew by 2.1% in September, slowing from an upwardly revised 3.6% expansion in the preceding period, which was the strongest growth in three months.

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.