Sweden

Sweden’s Economy Grows Faster Than Expected in Q2

Sweden’s economy expanded 1.6% quarter over quarter in the second quarter of 2026, beating market expectations for 1.4% growth and rebounding sharply from the previous quarter’s 0.2% contraction.

On an annual basis, GDP grew 3.3%, also exceeding the 2.8% forecast and accelerating significantly from 2.0% growth previously.

The stronger-than-expected figures point to improving momentum in the Swedish economy
Sweden’s Riksbank Holds Interest Rate at 1.75% as Inflation Risks Remain in Focus

Sweden’s central bank kept its benchmark interest rate unchanged at 1.75% on Thursday, matching market expectations as policymakers maintain a cautious stance toward inflation while monitoring the country’s economic recovery.

The Sveriges Riksbank’s decision leaves the policy rate at the same level as the previous meeting. The 1.75% rate will apply from August 26.
Sweden Economy Grows Much Faster Than Expected in Q2, Reducing Pressure for Further Rate Cuts

Sweden's economy expanded significantly faster than expected in the second quarter, pointing to a stronger-than-anticipated recovery and potentially reducing the urgency for additional monetary easing by the Riksbank.

GDP (QoQ): 1.4%
Expected: 0.7%
Previous: -0.2%

GDP (YoY): 2.8%
Previous: 2.0%
Sweden’s inflation data remained very weak in April, reinforcing the picture of subdued price pressures.

CPI (MoM, Apr): -0.6%
Expected: -0.6%
Previous: -0.6%

CPI (YoY, Apr): -0.1%
Expected: -0.1%
Previous: -0.2%
Sweden’s central bank kept its benchmark interest rate unchanged at 1.75%, in line with expectations and unchanged from the previous meeting.
Sweden’s trade balance posted a surplus of SEK 9.30 billion in March, sharply higher than the previous SEK 0.70 billion.
Sweden’s unemployment rate rose to 9.7% in March, up from 8.8% in the previous period, signaling a noticeable weakening in labor market conditions.
Sweden’s March inflation data came in broadly in line with expectations, but signals easing price pressures on a monthly basis.

Annual CPI held at 0.5% YoY, matching the previous reading of 0.5%. This indicates inflation remains very subdued and stable at low levels.

On a monthly basis, CPI declined -0.6%, in line with expectations and a sharp reversal from the previous +0.6%. This points to a clear cooling in short-term price dynamics.
Sweden’s inflation data showed a mixed picture in March, with modest annual pressure but a sharp monthly decline.

The CPI YoY Sweden rose slightly to 0.6% from 0.5%, indicating still subdued annual inflation.

However, the CPI MoM Sweden fell -0.6%, reversing the previous +0.6% increase.
Sweden’s trade balance posted a surplus of SEK 1.80 billion in February, down significantly from SEK 6.30 billion in the previous month.
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