Free Trial

Upside Surprise to Q1 GDP, Consumption Remains Contractive

MNI (London)

SWEDEN Q1 GDP +0.6% Q/Q (FCST +0.2%); Q4 -0.5% Q/Q

SWEDEN Q1 GDP +0.8% Y/Y (FCST +0.1%); Q4 -0.4%r Y/Y

  • The Swedish economy advanced by +0.6% q/q in Q1, outpacing the initial estimate of a modest +0.2% q/q uptick and rebounding from the -0.5% q/q Q4 contraction.
  • The upturn in GDP in Q1 was underpinned by higher inventories (contributing +0.6pp) and goods exports (+0.7pp).
  • Q1 saw household consumption decreased for a third quarter running, underscoring that domestic demand remains pressured. Household final consumption fell -1.2% q/q, representing a -0.5pp drag on the quarter, due to lower transport, food and non-resident consumption.
  • Despite today's GDP report flagging continued weakness in consumption, persistently sticky inflation and Krona weakness concerns outweigh for the Riksbank at present, so markets will continue to look for another 25bp hike in June.

Source: Statistics Sweden

To read the full story

Why Subscribe to


MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.