Sweden’s economy expanded more than estimated last quarter as unprecedented monetary easing helped underpin business investment even as household spending stalled.
Gross domestic product grew 0.3 percent from the second quarter, just beating a 0.2 percent median estimate in a Bloomberg survey of analysts.
“The economy continues to grow at a decent clip,” Colin Bermingham, an economist at BNP Paribas in London, said in a note. “But the slowdown in consumption expenditure is a concern, given the low level of inflation.”
While the largest Nordic economy has outgrown Europe on average since the region’s debt crisis started, Sweden has slipped into a deflationary spiral that drove the central bank last month to cut its main interest rate to zero for the first time in its history. Today’s report suggests price pressure is unlikely to come from consumer demand.
Private spending was unchanged from the second quarter while fixed investment rose 1.1 percent. Exports increased 0.7 percent.