Swedish economy unexpectedly shrinks in Q4

Sweden’s economy unexpectedly contracted in the fourth quarter of 2022, official figures showed Monday, as the country battles decades-high inflation.

The Scandinavian country’s gross domestic product shrank 0.6 percent in the last three months of the year, according to the national statistics office SCB.

Analysts had forecast quarter-on-quarter growth of 0.2 percent, according to Bloomberg News.

Sweden’s export-driven economy has shown signs of weakness in recent months.

The SCB lowered its growth estimate for 2022 from 2.7 percent to 2.4 percent. It expects the economy to go into a recession this year and grow slightly in 2024. Inflation surged to 12.3 percent in December, a more than 30-year high, while the Swedish krona is at its lowest level ever against the euro.

Europe’s biggest economy, Germany, also unexpectedly shrank in the fourth quarter, official data showed Monday.