Sweden Economic Outlook
January 29, 2019The economy likely bounced back in the fourth quarter from a contraction in the third quarter which was driven in large part by temporary factors. The services and manufacturing PMIs were well in expansionary territory throughout the period, even though both dipped notably in December. Moreover, the economic tendency indicator signaled solid growth, while the labor market was healthy, with solid employment growth throughout the period. However, the underlying picture is still one of gradually ebbing momentum. On the political front, in mid-January a new government was formed over four months after the general elections, with incumbent Stefan Löfven, leader of the Social Democratic Party, elected prime minister after reaching a deal with the Green, Centre and Liberal parties. The move should see a more liberal economic policy, although the new administration could be politically unstable. In the previous month, parliament approved an expansionary 2019 budget presented by the opposition Moderates and Christian Democrats, which will see lower taxes and higher government spending.
Sweden Economic GrowthLooking ahead, despite slowing from previous years, growth should be solid this year thanks to healthy exports and a more expansionary fiscal stance. That said, panelists have downgraded their 2019 forecast notably in recent months, amid weaker prospects in the eurozone and with softer residential investment set to drag on activity. Elevated household debt, meanwhile, poses a downside risk to the outlook. Met the why particular panelists see GDP rising 1.7% in 2019, down 0.2 percentage points from last month’s forecast, and 1.8% in 2020.
Sweden Economy Data
5 years of Sweden economic forecasts for more than 30 economic indicators.
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|Bond Yield||0.36||-4.79 %||Feb 14|
|Exchange Rate||9.29||-0.20 %||Feb 14|
|Stock Market||1,562||0.14 %||Feb 14|
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Sweden Economic News
February 13, 2019
At its 12 February monetary policy meeting, the Riksbank left the repo rate unchanged at minus 0.25%, as markets had expected. The Riksbank’s decision came after a rate hike in the previous meeting in December last year.
February 11, 2019
According to Statistics Sweden, total industrial production excluding energy increased a seasonally-adjusted 1.8% in December over the previous month, contrasting November’s 0.4% decrease.
January 30, 2019
The economic tendency indicator dropped from December’s revised 115.6 (previously reported: 116.3) to 111.9 in January.
January 24, 2019
On 18 January, Stefan Löfven, leader of the Social Democrats, was voted back in as prime minister, ending over four months of parliamentary impasse.
January 14, 2019
Consumer prices in Sweden rose 0.4% month-on-month in December, contrasting November’s 0.1% decline, according to data released by Statistics Sweden (SCB).