Swedish Economy Jumps On Export Rise
Surprising analysts, Statistics Sweden revealed that the Swedish economy roared past its industrialized competitors in the third quarter. Gaining by 1.6% in the quarter over quarter measure, the Nordic economy is now forecasted to expand by a robust 4.6% for the year. The release helped the country’s Krona gain initially, before settling lower in the session.
Boosting expansion in the Swedish economy was a pickup in export production. On a net basis, exports rose by 2.5% in the three month period. The quarterly rise was built on a gross 8.2% surge as fixed investments and business spending added 1.5% to overall gross domestic product. With a higher GDP figure, central bank officials are unlikely to change their current monetary policy stance next month – leaving rates alone at a low 2%. Riksbank officials left benchmark rates unchanged last month as well.
The better than expected figure also lifts spirits that consumer spending could be on the rise heading into year end. At last check, consumer confidence – dented by Eurozone fears and US global slowdown worries – fell to the lowest levels in two years. The slide in confidence has negatively affected overall consumption, with retail sales figures falling for the last three months.
Nonetheless, the Eurozone crisis continues to weigh on European currencies, helping the USDSEK to reverse minute gains made after the release of the GDP report. Currently trading at 6.9070, the USDSEK rate had traded as low as 6.8663 following the announcement.