Economic outlook for Sweden

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Swedish GDP in Q1 below expectations

The Swedish GDP in Q1 is weaker than forecasted. Gross domestic product grew an annual 2.5 percent in Q1, compared with a revised 2.6 percent in the prior quarter, Statistics Sweden said. Analysts surveyed by Bloomberg forecast a 2.8 percent expansion. The Swedish central bank, called Riksbank cut this year interest rates to negative for the first time and started buying government bonds to boost demand and prevent deflation from taking hold. This measure has helped to increase domestic demand and exports. Moreover stock and housing prices increased sharply.

In April retail sales decreased by 0.2 percent from an increase of 0.7 percent in March. The April-figure slowed down the

annual growth rate to +3.0 percent from +4.7 percent in March. Nevertheless  the National Institute of Economic Research’s

consumer confidence index increased more than expected in May. This may be regarded as a positive indicator for future retail sales.