Preliminary data released this morning show that the Swedish economy contracted by 0.8% q/q in Q2, more than offsetting the 0.7% increase in Q1. The data were significantly weaker than expected by both the consensus and us (consensus: -0.4%; CE: 0.0%) and increase our confidence that the Riksbank will cut its policy rate further this year from 3.75% to 3.00%, with the next cut coming at the policy meeting in three weeks’ time.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services