Sweden’s economy shrinks for 3rd consecutive quarter, entering technical recession

ISTANBUL

Sweden’s gross domestic product (GDP) fell 0.1% quarter-on-quarter in the third quarter of the year, according to preliminary results from the country’s agency Statistics Sweden on Tuesday.

This quarter’s fall came in after declines in the two previous quarters, meaning that the Swedish economy entered a technical recession, not having recovered from economic shrinking in two consecutive quarters.

The 0.1% decline came in after a 0.3% decline last quarter, and it was in stark contrast to the 0.4% growth forecast for the third quarter.

“Sweden’s gross domestic product decreased in September which together with weak development in July contributed to negative growth for the third quarter as a whole compared with the previous quarter,” said Melker Pettersson Loberg, an economist at Statistics Sweden, in a press release.

On a monthly basis, Sweden’s GDP fell 0.4% in September following a 1.1% increase in August.