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
ByThe Associated Press
November 29, 2023, 4:36 AM
A woman makes her way through a snowy street near the government headquearters Rosenbad during a heavy snowfall in central Stockholm, Sweden, Tuesday, Nov. 28, 2023. (Henrik Montgomery/TT News Agency via AP)
The Associated Press
STOCKHOLM — 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.