Sweden’s economy grew faster than expected during the third quarter, preliminary data show
STOCKHOLM, October 28 (Reuters) – Sweden’s economy grew faster than expected during the third quarter, as a vaccine expansion accelerated and the covid-19 restrictions were lifted, showed a preliminary estimate from the Statistics Office on Thursday.
GDP increased by 1.8% in the third quarter from the previous three-month period, surpassing a forecast of 1.3% in a Reuters survey. The economy grew by 4.7% compared with the third quarter last year.
The Swedish economy has recovered faster from the pandemic than many others in Europe, with activity returning to pre-covid-19 levels in the second quarter.
Sweden, which never went into lockdown during the pandemic, lifted almost all remaining curbs and recommendations at the end of September.
Bottlenecks and global problems with the supply chain have affected some manufacturers and raised questions about how long the economy can continue at full speed. Several Swedish car and truck manufacturers were forced to stop production in August due to semiconductor shortages.
“Growth figures are strong, especially given that a shortage of goods hampered growth,” Nordea wrote in a research note. “In combination with higher inflation, this makes a reduction in the Riksbank’s stimulus measures more likely.”
The rate of inflation in Sweden increased to the highest level in more than a decade in September. The Riksbank, which believes that price pressure will ease next year, expects to keep its balance sheet unchanged in 2022 and that the benchmark interest rate will remain at 0% at least until the last quarter of 2024.
Separate figures from the National Institute of Economic Research showed that Swedish consumer confidence fell to 103.1 in October from 106.6 the month before, but industry confidence rose to a historically strong 128.5 from 126.1.
Retail sales fell 0.3% in September compared with the previous month but rose 4.8 percent compared with the same month last year.
Reporting by Johan Ahlander, editing by Helena Soderpalm, Clarence Fernandez and Christina Fincher
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