STOCKHOLM: Sweden’s economic growth slowed to 0.4 percent in the first quarter due to lower exports, the nation’s statistics service said on Tuesday.
Driven by strong consumption and investment, growth was 2.2 percent year on year, the National Statistical Institute (SCB) said in a statement. The quarter on quarter growth figure surprised economists, who were expecting a much stronger 1.0 percent.
“Not our best forecasting day,” said Andreas Wallstrom, chief analyst at Nordea markets, on his Twitter account, adding it was due to “lower net exports and public consumption than expected.”Sweden’s household consumption rose by 0.5 percent and property prices jumped by 7.7 percent.
Consumption of transport, furniture, hotel and restaurant services have been on the rise, the SCB said. Sweden is a major exporter of transport equipment, machinery and iron. Overall export figures were down by 0.2 percent but goods exports were up by 1.7 percent. Service exports fell by 4.3 percent, according to the statistical institute, which cited the decline in the activity of rental companies.
After an exceptional year in 2015 with a 4.1 percent expansion, Swedish growth slowed down to 3.2 percent in 2016. The central bank expects 2.8 percent growth this year.
