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Sweden's economy shrinks in the third quarter to signal that a recession may have hit the country

Sweden’s economy shrank in the third quarter of 2023 to mark the second time of contraction and signal that a recession may have hit the country

Via AP news wire
Wednesday 29 November 2023 04:36 EST
Sweden Europe Weather
Sweden Europe Weather (COPYRIGHT TT NYHETSBYRÅN)

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Sweden's economy shrank in the third quarter of 2023 to mark the second time of contraction and signal that a recession may have hit the country.

Data released Wednesday by Statistics Sweden showed that the country's gross domestic product declined by 0.3% in the period ending in October.

“The GDP decreased for the second quarter in a row. The downturn in the economy was broad, but was held back somewhat by strong service exports,” said Jessica Engdahl, section manager at the National Accounts with the statistical agency.

The decline is mainly explained by inventory liquidation and lower household consumption. Engdahl added that household consumption expenditure had decreased for the fifth consective quarter.

Compared to the third quarter of 2022, GDP decreased by 1.4%.

Two consecutive quarters of contraction is a common definition of recession, though economists on the eurozone business cycle dating committee use a broader set of data, including employment figures.

Sweden is a member of the European Union, but doesn't use the euro currency.

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