- Swedish GDP grew 1.8% in the third quarter compared to the second
- Economists forecast growth of 1.3%
- Growth significantly higher than pre-pandemic level
STOCKHOLM, October 28 (Reuters) – The Swedish economy grew faster than expected in the third quarter, as vaccine deployment accelerated and COVID-19 restrictions were lifted, an estimate showed Thursday preliminary from the Bureau of Statistics.
GDP grew 1.8% in the third quarter from the previous three months, beating forecasts by 1.3% in a Reuters poll. The economy grew 4.7% from the third quarter of last year.
The Swedish economy rebounded faster after the pandemic than many others in Europe, with activity returning to pre-COVID-19 levels in the second quarter.
Sweden, which was never stranded during the pandemic, lifted almost all remaining restrictions and recommendations at the end of September.
Bottlenecks and global supply chain issues have hit some manufacturers and raised questions about how long the economy can continue to run at full capacity. Several Swedish car and truck makers were forced to shut down production in August due to semiconductor shortages.
“The growth numbers are strong, especially as commodity shortages have hampered growth,” Nordea wrote in a research note. “Coupled with higher inflation, this makes a reduction in the Riksbank’s stimulus more likely. “
The pace of headline inflation in Sweden hit its highest level in more than a decade in September. The Riksbank, which estimates price pressure will ease next year, expects its balance sheet to remain unchanged in 2022 and the benchmark repo rate to remain at 0% until at least the last quarter. from 2024.
Separate figures from the National Institute for Economic Research showed Swedish consumer confidence fell to 103.1 in October from 106.6 the previous month, but confidence in manufacturing rose from 126.1 to 128 , 5 historically.
Retail sales were down 0.3% in September from the previous month but were up 4.8% from the same month last year.
Reporting by Johan Ahlander, editing by Helena Soderpalm, Clarence Fernandez and Christina Fincher
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