Sweden continues to show its economic muscles - GDP figure revised stronger


Friday, 27 May 2011
The Swedish recovery continues to throttle producing very high speed. The rate of growth is still strong, but slowed down slightly more than expected in the first quarter.

Sweden's GDP grew by 6.4 percent in the first quarter from a year earlier, according to Statistics Sweden, SCB. It marked a slowdown from the record high and now revised value growth rate of the entire 7.7 percent for the fourth quarter of last year.

During the spring period, Swedish households, purchasing managers and companies continued to show signs of strength and expectations for Friday’s growth figure were the highest.

Seasonally adjusted GDP increased 0.8 percent compared with the fourth quarter of 2010. Both household consumption expenditures and general government consumption expenditures increased 2.1 percent. The changes in inventories amounted to a positive GDP change of 2.5 percentage points.

Gross fixed capital formation increased 8.7 percent. Exports increased 15 percent and imports 13 percent. Industrial production increased by 9.2 percent. Producers of goods increased 14 percent and service sector industries 6.4 percent. Total employment, measured as the number of hours worked, increased 2.1 percent while the numbered of employed persons increased 2.8 percent.


Compared to the publication in March 2011, statistic Sweden has revised the Swedish GDP growth for 2010 upwards by 0.2 percentage points to 5.7 percent. According to the new calculations Sweden's GDP grew by 5.7 percent full year 2010 compared with a year earlier, an upward revision from the earlier estimate of 5.5 percent.

The Riksbank and the analyst community according to various consensuses had forecast 6.6 percent growth. SEB had expected 6.8 percent. This is where there has been some disappointment but the growth is still very strong.

"It was a bit weaker in investment and consumption than we thought. It is worth noting because the interest rate increases the effects have been discussed. But on the whole, this is still a confirmation of the Swedish force, "said SEB's chief H�kan Frisell.

The Swedish households reduced their expenditure on food, fuel and electricity during the quarter. The late Easter and a milder winter, after all, compared to 2010 partly explain the decline, according to Statistics Sweden.

Motor vehicle sales was however strong. Car purchases rose 22 percent from a year earlier. The strong exchange rate also contributed to the Swedes' consumption abroad grew by 12.7 percent.
By Team

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