Sweden’s GDP Shrinks More Than Expected, Fueling Recession Risks

  • Second-quarter GDP drops 1.5% on quarter versus -0.5% forecast
  • Sweden’s economy has been seen as one of EU’s weakest in 2023
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Sweden’s economy contracted more than economists had anticipated last quarter, reviving prospects of a hard landing and causing the krona to weaken.

Gross domestic product, adjusted for seasonal swings, dropped 1.5% in the second quarter from the previous three-month period — the steepest decline since the second quarter of 2020, according to data from Statistics Sweden on Friday.