Swedish economy contracts for the 4th consecutive quarter

Posted on May 3, 2024   |  

Gross domestic product (GDP) declined by 0.1% compared to the previous quarter and 1.1% year-over-year, with a specific contraction of 0.3% in March.

Contrary to analysts' projections of a 0.2% expansion, the economy experienced persistent weakness.

Swedbank predicts a potential policy rate reduction by the Riksbank to 3.75% at its forthcoming meeting, anticipating further rate adjustments amid subdued inflation.

Retail sales witnessed a 0.4% decline in March from February, exacerbating concerns over economic sluggishness.

Despite government commitments to increased spending and expectations of slight growth improvement in 2024, challenges persist following a 0.2% economic contraction in 2023.