Saturday, 30 July 2011
Sweden's gross domestic product (GDP) grew by 5.3 percent in the second quarter compared to same period last year.
Compared to the first quarter of this year, GDP grew by 1.0 percent, according to Statistics Sweden (SCB). Some Analysts who spoke to the Reuters news agency had expected a growth of 5.0 percent compared to second quarter last year.
GDP in actual terms rose by 4.8 percent. Seasonally adjusted GDP increased by 1.0 percent compared with the first quarter of 2011. Household consumption expenditures rose by 2.3 percent and general government consumption expenditures increased 0.5 percent non-adjusted.
Household consumption expenditure growth is reported to have been driven mainly due to purchases of cars and consumption abroad. By contrast, spending on fuel and electricity was down.
Government consumption expenditure grew by 0.5 percent.
The changes in inventories amounted to a positive GDP change of 0.7 percentage points. Gross fixed capital formation increased by 8.1 percent. Exports increased 7.8 percent and imports 5.8 percent. Production of goods increased 9.2 percent and service sector industries rose 6.1 percent working-day adjusted.
Total employment, measured as the number of hours worked, increased 1.8 percent while the number of employed persons increased 2.5 percent.
According to Swedbank economist, Cecilia Hermansson, “It has slowed down compared to last year, but it has improved over the first quarter. It is a sign of strength that were not anticipated in the market,”
She also adds that the outcome yesterdays result signals that the Riksbank (central bank) will not change the assessments it has about another two rate hikes this year. Compared to the first quarter was the GDP figure was better than Swedbank had expected.
“It is much stronger than we had expected. We had assessment of 0.5 and it came in at 1.0 percent. We had an assessment of that imports would be much stronger than it really was,” said Hermansson.
By Scancomark.se Team