According to figures published by Statistics Sweden on Wednesday, calendar-adjusted GDP fell by 0.3 percent in the third quarter compared to the previous quarter, when a 0.8 percent decline was recorded. On an annual basis, Swedish GDP development looks even uglier. While the Nordic country’s economy contracted by 0.4 percent in the second quarter, it contracted by 1.4 percent in the third quarter. The latter shows a larger decline of 0.2 percent compared to the quick estimate, A reports World economy.
As a result, the Swedish economy entered a technical recession in the third quarter.
The economic paper explained that we are talking about a technical recession when the GDP declines in two consecutive quarters.
In the past, an artistic recession was avoided in the northern European country due to a A decrease of 0.3 percent compared to the end of last year After annual growth of 1.5 percent in the first quarter of this year.
There is no way out of the crisis
This decrease is mainly due to households reducing their consumption due to higher credit costs Economic inflation Because its expenditures decreased by 0.6 percent year on year, while government consumption decreased by 0.7 percent.
Household consumption spending fell for the fifth consecutive quarter
Office books In his statement Jessica Engdahl, Head of the Census Bureau Division.
Despite rising interest rates and inflation, headcount has reached record levels in recent months. However, the latest data shows that weak demand is increasing unemployment, and the number of workers in the private sector fell by 0.1 percent in the third quarter.
The Riksbank expects GDP to decline by 0.7 percent this year and 0.2 percent next year. According to European Commission forecasts, the Scandinavian country will be the only member state where emissions may decrease next year, while Bloomberg According to his information, many analysts believe so
The Swedish economy may contract for up to two years.
