Sweden defies recession forecasts as economy sees surprise upturn
Despite still fighting high inflation and interest rates, the Swedish economy grew more than expected in the first quarter of the year.
The top Nordic economy expanded by 0.6 percent in the first three months of the year, avoiding a technical recession following a 0.2 percent contraction in the fourth quarter of 2022.
"The upturn is mainly explained by an increase in inventories and by a strong growth in the export of goods," Statistics Sweden said in a statement.
Analysts were on average expecting 0.1 percent growth, according to Bloomberg.
A preliminary estimate published by Statistics Sweden at the end of April had put growth at 0.2 percent.
Year-on-year, GDP grew by 0.8 percent in the first quarter of 2022, compared to the 0.3 percent preliminary figure.
The upturn comes despite the central bank's rate-hike campaign against inflation, which is still hovering around 10 percent.
According to its April forecast, the central bank expects the Swedish economy to contract 0.7 percent for 2023 as a whole.
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The top Nordic economy expanded by 0.6 percent in the first three months of the year, avoiding a technical recession following a 0.2 percent contraction in the fourth quarter of 2022.
"The upturn is mainly explained by an increase in inventories and by a strong growth in the export of goods," Statistics Sweden said in a statement.
Analysts were on average expecting 0.1 percent growth, according to Bloomberg.
A preliminary estimate published by Statistics Sweden at the end of April had put growth at 0.2 percent.
Year-on-year, GDP grew by 0.8 percent in the first quarter of 2022, compared to the 0.3 percent preliminary figure.
The upturn comes despite the central bank's rate-hike campaign against inflation, which is still hovering around 10 percent.
According to its April forecast, the central bank expects the Swedish economy to contract 0.7 percent for 2023 as a whole.
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