Social Democratic Finance Minister Magdalena Andersson’s Friday began well as Statistics Sweden released its national figures for the second quarter. GDP rose by 1.7% on the previous quarter and by 4% compared to Q2 2016.
“The Swedish economy is clearly extremely strong… It stands out clearly if you make international comparisons,” said Magdalena Andersson.
The figures exceeded expectations and Andersson pointed out several contributing factors, including household consumption increasing by 1.1%.
Investments in industry grew last year by 10% to SKr 66 billion, but this year will be down by five percent, according to a survey by Statistics Sweden.
However it looks brighter for construction, with planned volume increases of 17% and for trade in goods, at 12%.
Nevertheless the outlook remains bleak for mining as the fall in investments continues this year, minus 23%, according to the companies’ plans.
Sweden’s economy grew twice as fast in the third quarter as economists had forecast, fuelled by rising consumption and investment. Exports also contributed to the growth, even if imports increased at a similar rate.
The economy expanded 0.8% in the quarter, said Statistics Sweden. At an annual rate, the economy grew by 3.9%. The Swedish krona strengthened by 5 öre against both the dollar and the euro on the news.
With the ECB expected to deliver more stimulus on Thursday, the pressure is on the Riksbank to cut the repo rate again in December. “However, the figures speak against any action by the Riksbank,” said Annika Winsth, Nordea’s chief economist.