Sweden's Q4 GDP grew 0.1% after two quarters of contraction; yearly GDP declined 0.3%, but economists hope reduced inflation could prevent a 2024 contraction.

Sweden's GDP grew by 0.1% in the fourth quarter of 2023, recovering after two consecutive quarters of contraction, according to preliminary data from Statistics Sweden. The overall GDP growth for the year was negative at 0.3%. Retail sales fell 2.2% yearly and 0.2% monthly in December. Despite a challenging near-term outlook, economists are hopeful that receding inflation could lead to more lenient monetary policies and increased government spending, potentially avoiding a second year of economic contraction in 2024.

January 29, 2024
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