![Sweden enters recession as inflation hits consumers](https://photo-cdn.urdupoint.com/media/2023/11/_2/740x404/pic_1701260687.jpg)
Sweden Enters Recession As Inflation Hits Consumers
Mohammad Ali (@ChaudhryMAli88) Published November 29, 2023 | 05:24 PM
![Sweden enters recession as inflation hits consumers](https://photo-cdn.urdupoint.com/media/2023/11/_2/740x404/pic_1701260687.jpg)
Sweden fell into a recession in the third quarter as its economy contracted by 0.3 percent and consumers tightened their belts for a fifth straight quarter, Statistics Sweden said Wednesday
Stockholm, (UrduPoint / Pakistan Point News - 29th Nov, 2023) Sweden fell into a recession in the third quarter as its economy contracted by 0.3 percent and consumers tightened their belts for a fifth straight quarter, Statistics Sweden said Wednesday.
The Scandinavian country is one of the worst economic performers in the European Union, with the European Commission forecasting average growth of 0.6 percent in the EU in 2023.
Sweden's economy shrank by 0.8 percent in the second quarter. A recession is usually defined as two consecutive quarters of contraction.
"The downturn is mainly explained by a decrease in inventories and reduced household consumption," the statistics agency said in a statement.
Household consumption shrank by 0.6 percent in the third quarter from the second, while decreased industrial inventories contributed a negative 1.4 percentage points to the economy's performance.
The country has been struggling with stubbornly high inflation for more than a year as well as a depreciating krona -- prompting the central bank to successively raise its key rate to four percent, its highest level in 15 years.
Consumers have been hard hit by the higher prices and interest rates, with many households having mortgages with variable interest rates.
"Household consumption was much weaker than expected and posted a negative contribution to GDP for the fifth consecutive quarter, which is in line with the previous longest decline from 1992-93," Swedish bank Swedbank said in an analyst note.
Exports were however up by a solid 1.4 percent from the previous quarter, with net exports contributing positively to GDP by 1.5 percentage points.
Compared with the third quarter of 2022, the economy shrank by 1.4 percent, Statistics Sweden said.
"Overall ... the outcome confirms a weak development in the Swedish economy," Swedbank said.
The government recently expressed concern over the country's "prolonged economic winter", as unemployment rose to 7.7 percent in the third quarter.
The government forecasts a contraction of 0.8 percent for 2023 as a whole.
Related Topics
Recent Stories
![Cricket: England v West Indies 3rd Test scoreboard](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019914.jpg)
Cricket: England v West Indies 3rd Test scoreboard
![Finance minister briefs Chinese officials on refor ..](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019922.jpg)
Finance minister briefs Chinese officials on reform agenda, engagement with IMF
![Finland says Russian vessel violated its territori ..](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019912.jpg)
Finland says Russian vessel violated its territorial waters
![Olympic opening ceremony under way on River Seine](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019266.jpg)
Olympic opening ceremony under way on River Seine
![West Indies' treble strike rocks England in third ..](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019264.jpg)
West Indies' treble strike rocks England in third Test
![Ukraine court orders detention of suspect in murde ..](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019262.jpg)
Ukraine court orders detention of suspect in murder of nationalist ex-MP
![Long queues, ticketing problems ahead of Paris ope ..](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019015.jpg)
Long queues, ticketing problems ahead of Paris opening ceremony
![Rana Sanaullah Khan joins Paris 2024 Olympics inau ..](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019638.jpg)
Rana Sanaullah Khan joins Paris 2024 Olympics inauguration reception
![Glowing tributes mark 69th birthday of President Z ..](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019637.jpg)
Glowing tributes mark 69th birthday of President Zardari at Governor's House
![Players unaware of spying scandal as Canada Olympi ..](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019635.jpg)
Players unaware of spying scandal as Canada Olympic coach sent home: official
![Naqvi hails Pak women cricketers for going down fi ..](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019013.jpg)
Naqvi hails Pak women cricketers for going down fighting against SL
!['Sabotage' on French rail network before Olympics: ..](https://photo-cdn.urdupoint.com/media/2024/07/_1/235x155/pic_1722019634.jpg)
'Sabotage' on French rail network before Olympics: What we know
More Stories From Business
-
Finance minister briefs Chinese officials on reform agenda, engagement with IMF
7 hours ago -
Chinese support for CPEC, development projects show deep love with Pakistan: Mushahid
7 hours ago -
G20 seeks common ground on taxing super-rich
7 hours ago -
Stocks rise as inflation data boosts rate cut hopes
7 hours ago -
Land of PSM to be used for establishment of SEZs: NA body told
9 hours ago -
European medicines watchdog rejects new Alzheimer's drug
9 hours ago
-
FBR committed to resolve taxpayer issues in KP, Chairman FBR assures Governor KP
11 hours ago -
Tanveer emphasizes role of SEZs in attracting investment
11 hours ago -
Russian central bank hikes key rate to fight inflation
11 hours ago -
SBP injects Rs9.545 trillion into market
11 hours ago -
PSX stays bearish, loses 439 points
11 hours ago -
US Fed's favored inflation measure cools further in June
12 hours ago