Swedish economy slows after months of growth

Sweden’s economy contracted by 0.2% in June compared with the previous month, according to preliminary seasonally adjusted GDP figures released by Statistics Sweden (SCB).

Despite the monthly decline, GDP for the second quarter as a whole was 1.4% higher than the previous quarter, exceeding expectations of 0.7% growth, SCB reported.

Alexandra Stråberg, chief economist at Länsförsäkringar, called the figures a “positive surprise” and noted signs of recovery, including improved consumer confidence and stable inflation. However, she cautioned that ongoing instability in the Middle East and fluctuating oil prices could affect inflation and monetary policy.

Stråberg maintains a 2% annual growth forecast, stating that while Sweden remains in a downturn with high unemployment, the economy is in a “strong recovery phase.”