Sweden’s economy stagnated in the first quarter of 2025, with gross domestic product (GDP) showing no growth compared to the previous three months, according to preliminary data from the Statistics Office released Tuesday. Analysts had projected a modest 0.2% increase quarter-on-quarter.
On an annual basis, GDP rose 1.1%, also falling short of the 1.7% growth forecast. In comparison, the economy expanded 0.8% quarter-on-quarter and 2.4% year-on-year during the final quarter of 2024, signaling a slowdown in momentum.
March data showed a 0.6% monthly increase, but that improvement failed to carry over into the broader quarterly figures. The weaker-than-expected performance adds to concerns about Sweden’s economic resilience amid persistent global uncertainty and tighter financial conditions.
Investors and policymakers are now closely watching the central bank’s next move, with the Riksbank scheduled to announce its interest rate decision on May 8. Markets are speculating whether the stagnant GDP results will influence monetary policy, especially as inflation pressures and global risks remain significant factors for Sweden’s economic outlook.
