Sweden Q4 GDP Growth Revised Higher

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The Swedish economy grew 0.5% quarter-on-quarter in Q4 2025, exceeding initial estimates of 0.2%, but slowing from a downwardly revised 0.8% growth in the previous period. Net trade weighed on GDP, as exports fell 1.2% (vs 1.1% in Q3), driven by weak goods exports, while imports remained flat (0.0% vs 0.1%). Changes in inventories also subtracted 0.5 percentage points from GDP, with a decline in industrial inventories contributing the most. Household consumption was unchanged at 0.9%. Meanwhile, government spending accelerated to 2.3% (vs 0.2%), supported by higher central government consumption, alongside fixed investments, which rose 2.9% (vs 0.8%), mainly due to machinery, equipment, and weapon systems. On a yearly basis, GDP expanded 2.1%, slowing from 2.6% in Q3 but above the flash estimate of 1.8%. For the full year 2025, the Swedish economy grew 1.5%.

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