Sweden posts strong growth as Denmark dips

AFP, STOCKHOLM: Sweden’s economy posted strong third quarter growth on robust household consumption and rising investment, while neighbouring Denmark saw its economy contract for the first time since 2013, official data showed yesterday.
Sweden’s gross domestic product grew by 0.8 per cent in the quarter compared to the previous three-month period, Statistics Sweden said.
Year-on-year growth, which was driven mainly by exports, was 3.9 per cent.
These figures are “well above forecasts... Outcome confirms (the) view that the Swedish economy is growing broadly and above potential,” Nordea Bank commented.
The Swedish central bank, the Riksbank, said one of the big surprises was the near stagnation of public spending, despite investment linked to the country hosting unprecedented numbers of migrants.
Sweden has taken in more asylum seekers as a proportion of its population than any other country in Europe, as the continent struggles with its biggest migration crisis since World War II.
“The refugee crisis is not affecting growth yet,” Nordea analyst Torbjorn Isaksson said.
The strong growth could lead the Riksbank to reconsider its generous monetary policy, with the current key interest rate of -0.35 per cent aimed at preventing a drop in prices.

Sweden posts strong growth as Denmark dips

AFP, STOCKHOLM: Swedens economy posted strong third quarter growth on robust household consumption and rising investment, while neighbouring Denmark saw its economy contract for the first time since 2013, official data showed yesterday. Swedens gross domestic product grew by 0.8 per cent in the quarter compared to the previous three-month period, Statistics Sweden said. Year-on-year growth, which was driven mainly by exports, was 3.9 per cent. These figures are well above forecasts... Outcome confirms (the) view that the Swedish economy is growing broadly and above potential, Nordea Bank commented. The Swedish central bank, the Riksbank, said one of the big surprises was the near stagnation of public spending, despite investment linked to the country hosting unprecedented numbers of migrants. Sweden has taken in more asylum seekers as a proportion of its population than any other country in Europe, as the continent struggles with its biggest migration crisis since World War II. The refugee crisis is not affecting growth yet, Nordea analyst Torbjorn Isaksson said. The strong growth could lead the Riksbank to reconsider its generous monetary policy, with the current key interest rate of -0.35 per cent aimed at preventing a drop in prices.