Sweden in recession as Q3 GDP shrinks more than expected from Q2

Sweden's economy slumped into recession in the third quarter, contracting 0.3% from the previous one, the statistics office said on Wednesday, as higher interest rates hit consumer spending.

Compared to the corresponding quarter last year, GDP shrank 1.4%, more than a flash estimate that had indicated GDP would shrink 1.2%. The flash estimate had indicated stagnant growth compared to the previous quarter.

"GDP decreased for the second consecutive quarter," the statistics office said in a statement.


"The downturn was general but counteracted in part by strong exports of services. Household consumption expenditure was negative for the fifth consecutive quarter," it said.