Sweden GDP Q3 2022

The economy performed well in the third quarter of 2022 and did not succumb to contraction concerns. According to preliminary data released by Statistics Sweden, GDP grew by 0.7% seasonally adjusted compared to the previous quarter. The result was in line with consistent growth recorded in the previous quarter and beat market expectations of a 0.1% contraction. Meanwhile, on a calendar year-adjusted annualized basis, GDP grew 2.6% in the third quarter, down from the 4.0% growth in the previous quarter.

While release details are still pending, the lowest unemployment rate since Q2 2019 in the third quarter should have protected households to some extent from higher price pressures, which in turn contributed to robust quarterly performance. At the same time, despite the optimistic data for the 3rd quarter, the slowdown in growth could only be delayed. Economic sentiment was more pessimistic in October, while consumer sentiment fell to its lowest level since January 1993, which did not bode well for private consumption. In addition, economic performance in the third quarter is likely to give the Riksbank room to continue its aggressive monetary tightening at its upcoming meeting on November 23 to bring down both inflation and economic growth.

A more complete breakdown of Q3 2022 GDP will be released on November 29.

FocusEconomics Consensus Forecast experts predict GDP growth of 0.3% in 2023, which is 0.5 percentage points lower than last month’s forecast, and 1.7% in 2024.