STOCKHOLM (AFP) – The Swedish economy shrank in the second quarter as household spending and investment fell, official data showed yesterday.
The country’s gross domestic product (GDP) contracted by 0.3 per cent compared to the first quarter, when it grew 0.7 per cent, according to Statistics Sweden.
“GDP decreased slightly in the second quarter. The downturn in the economy was wide but offset by the foreign trade in goods, where exports increased and imports decreased,” said head of national accounts at Statistics Sweden Jessica Engdahl.
Household consumption fell by 0.2 per cent, with lower spending on food and non-alcoholic drinks leading the decline.
Investment declined by 1.7 per cent.
Economists expect the Swedish economy to strengthen by the end of the year as inflation eases and interest rates fall.
