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Swedish Economy Unexpectedly Shrinks in Fourth Quarter

  • Biggest Nordic economy is hurting as consumers cut spending
  • Riksbank is seen raising rates next week to counter inflation
Updated on

Sweden’s economy unexpectedly contracted in the fourth quarter as weaker purchasing power erodes consumer spending in the biggest Nordic economy.

Gross domestic product shrank 0.6% in the three months through December from the previous quarter, on a seasonally adjusted basis, according to preliminary data from Statistics Sweden. Economists surveyed by Bloomberg had on average expected an expansion of 0.2%, while the Riksbank had forecast a contraction of 0.8% for the quarter.