STOCKHOLM, Oct 29 - Sweden's economy has officially entered a technical recession, with preliminary data indicating a 0.1% decline in gross domestic product (GDP) for the third quarter of 2024, following a similar decrease in the second quarter. This marks two consecutive quarters of economic contraction, a condition that defines a recession.
Year-over-year comparisons show that GDP was also down 0.1% compared to the same quarter in 2023. Analysts had anticipated a 0.4% growth for the July-September period, alongside a 0.7% increase from the previous year.
In September, GDP grew by 0.1% compared to the same month in 2023 but fell by 0.4% relative to August. The Swedish statistics office noted that the negative growth in the third quarter was driven by a decline in September's GDP, compounded by weak performance in July.
Sweden's economy has shown signs of stagnation over the past year. The Riksbank, Sweden's central bank, has indicated potential policy rate cuts in its upcoming meetings, with expectations of a significant reduction in November. Swedbank has also suggested that the latest economic data increases the likelihood of a substantial rate adjustment.