Swedish economy falls into recession

Sweden’s economy entered a technical recession in Q3, as GDP fell 0.1 per cent from the previous quarter, according to preliminary data from the statistics office.

This marks the second consecutive quarterly decline, with GDP also down 0.1 per cent year-over-year. Analysts had anticipated a 0.4 per cent expansion for the quarter and a 0.7 per cent annual growth.

September’s GDP slipped 0.4 per cent from August, though it was up 0.1 per cent from the same month in 2022.

The statistics office noted that weak performance in July and September contributed to the quarterly contraction.

Sweden’s economy has shown signs of stagnation, with the Riksbank expected to consider a rate cut at its upcoming meeting in November.

Swedbank forecasts a 50 basis point cut, citing rising recession risks and sluggish economic conditions.