Swedish GDP revised QoQ actual 0.5% (forecast -, previous 0.2%)

Swedish GDP revised QoQ actual 0.5% (forecast -, previous 0.2%)

Sweden’s Q2 2025 GDP Revised Upward to 0.5% QoQ, Surpassing Forecasts

The Swedish economy expanded by 0.5% quarter-on-quarter in the second quarter of 2025, according to revised data from Statistics Sweden, marking a significant upward revision from the initial estimate of 0.1% growth and exceeding market forecasts of 0.3%. This follows a 0.2% contraction in the first quarter, signaling a modest recovery in economic activity. On an annual basis, GDP grew by 1.4%, accelerating from a downwardly revised 0.9% expansion in the prior quarter.

The rebound was driven by robust fixed investments, which surged 1.7% quarter-on-quarter, and increased household consumption, which rose 0.4%. Government spending also contributed, with general government consumption up 0.2%. However, net trade subtracted from growth, as imports outpaced exports by 1.3 percentage points. Jessica Engdahl, head of section at the National Accounts, noted that "increased imports of both goods and services dampened the growth," despite gains in gross fixed capital formation and inventory adjustments.

The upward revision reflects improved business sector performance, with value added in services rising 0.9% and household real disposable income growing 2.5% year-on-year. Public administration reported a surplus of SEK 26.3 billion in Q2, compared to SEK 20.4 billion in the same period in 2024.

Looking ahead, economists project continued moderation in growth, with Sweden's GDP growth rate expected to trend around 0.3–0.4% in 2026 and 2027. While the recent rebound offers some optimism, persistent challenges in net trade and global economic conditions may constrain momentum in the near term.

Trading Economics, : Trading Economics, Sweden GDP Growth Rate
Statistics Sweden, : Statistics Sweden, National Accounts—Second Quarter 2025