Indicators

Swedish Economy May Have Shrunk Last Quarter, Data Shows

  • Flash indicator shows GDP fell 0.8% on quarter in surprise
  • More key rate cuts are expected before the end of this year

An apartment construction site in Stockholm.

Photographer: Andrey Rudakov/Bloomberg
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Sweden’s economy may have contracted last quarter for the first time in a year, according to a flash indicator, as high borrowing costs weigh on spending and investment.

If the flash estimate — often subject to large revisions — holds, it will be the biggest contraction since the last quarter of 2022.