Sweden’s economic growth eased slightly in the third quarter, but the pace of expansion was double than the rate economists’ had forecast, preliminary data from Statistics Sweden showed Monday.
Gross domestic product grew a seasonally adjusted 0.8 percent from the second quarter, when the economy expanded 1 percent, which was revised from 1.1 percent. Economists had expected 0.4 percent growth.
The economy grew for the ninth consecutive quarter. “Today’s data make it less likely that the Riksbank will loosen monetary policy again in December,” Capital Economics economist Jessica Hinds said.
However, the economist pointed out that headline inflation remains close to zero and the Riksbank’s decision-making is driven more by the ECB, which is likely to increase its policy support on Thursday.
“As a result, we doubt that the GDP data will make much difference. Moreover, the recent strengthening of the krona and the looming slowdown in the euro-zone may soon start to undermine exports,” Hinds added.
Private consumption grew 0.7 percent and public spending edged up 0.1 percent. Gross fixed capital formation increased 1.2 percent. Exports rose 2.1 percent and imports moved up 2.1 percent.
Year-on-year, GDP rose a working-day adjusted 3.9 percent in the third quarter, which was the fastest expansion since the first quarter of 2011, when growth was 5.2 percent.
The material has been provided by InstaForex Company – www.instaforex.com