Sweden unexpectedly slides back into recession


Reuters
March 1, 2010

  • A d v e r t i s e m e n t
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Sweden’s economy unexpectedly slid back into recession in the fourth quarter, figures showed, sending the crown lower and raising questions about how soon interest rates will rise.

Gross domestic product contracted 0.6 per cent in the fourth quarter from the third, against forecasts for a 0.3 per cent increase.

The third-quarter GDP figure was revised to show a 0.1 per cent quarterly decline from an original 0.2 per cent gain, the statistics office said.

This meant the economy fell back into recession, based on a widely held definition of the term.

Economists were divided over the implications of the numbers.

Some said GDP often gets revised sharply and this did not change the overall economic picture. Others said this made central bank forecasts for a rate rise this summer look dangerous.

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