Swedish economy expands below expectations in Q3

The Swedish economy grew weaker than expected in the third quarter. The GDP grew 2.9 percent year-on-year in the September quarter. The weaker-than-expected economic growth reading has not changed the view of a robust economy and a very tight labor market.

However, it is still on the dovish side as the economic growth is lower than the Riksbank’s expectations. The economic growth averaged 2.5 percent in the initial nine months and it appears difficult to reach the central bank’s projection at 3.1 percent for the FY 2017, noted Nordea Bank. The below expected economic growth takes the edge off the very optimistic indicators, for instance the solid Tendency Survey released earlier in the day.

On a sequential basis, the Swedish economy grew 0.8 percent in the third quarter. The figure for the first half of 2017 was downwardly revised due to lower fixed investment. There were several surprises on the downside for the third quarter. The biggest surprise was net exports as imports rose sharply. Unit labor cost eased and is consistent with the central bank’s view.

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest