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flag 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.

flag 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. flag The overall GDP growth for the year was negative at 0.3%. flag Retail sales fell 2.2% yearly and 0.2% monthly in December. flag 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.

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