Sweden Enters Recession as Economy Contracts for Second Consecutive Quarter

The downturn, largely driven by inventory liquidation and decreased household consumption, is somewhat offset by strong service exports.

Sweden's economy has entered a recession, with the GDP contracting 0.3% in the third quarter of 2023, marking the second consecutive quarter of contraction.
Compared to the third quarter of 2022, the GDP decreased by 1.4%.
The decline is mainly due to inventory liquidation and lower household consumption, which has decreased for the fifth consecutive quarter.
Despite the downturn, the economy was somewhat supported by strong service exports.
The Riksbank, Sweden's central bank, has hiked rates to 4% from zero 18 months ago, impacting consumer spending and investments.