The Swedish economy expanded 0.4 per cent on quarter in the first three months of 2017.Fixed investment and household consumption were the main drivers of growth while government spending contracted and net trade contributed negatively. Year-on-year, the GDP advanced 2.2 per cent.

After an exceptional year in 2015 with a 4.1 per cent expansion, Swedish growth slowed down to 3.2 per cent in 2016. Sweden’s economic growth slowed to 0.4 per cent in the first quarter due to lower exports.

This was probably due to lower net exports and public consumption than expected. Driven by strong consumption and investment, growth was 2.2 per cent year on year.

Household consumption rose by 0.5 per cent and property prices jumped by 7.7 per cent. Consumption of transport, furniture, hotel and restaurant services has been on the rise.

Sweden is a major exporter of transport equipment, machinery and iron. Overall export figures were down by 0.2 per cent but goods exports were up by 1.7 per cent. Service exports fell by 4.3 per cent.

Gross fixed capital formation jumped 2.5 per cent after rising by one per cent in the fourth quarter 2016; and household consumption went up 0.5 per cent. Changes in inventories contributed 0.1 per cent points to GDP growth.