Swedish Economy in Stagnation: Sideways Movement in Key Indicators

The latest economic update from Statistics Sweden (SCB) reveals a persistently sluggish Swedish economy, with most indicators showing a sideways trend. This implies minimal or weak growth, with the GDP indicator remaining largely unchanged since the end of 2021. Despite a slight upturn in August, both industrial production and household consumption have exhibited a weak trend over an extended period. This information is detailed in SCB’s economic journal, “Sveriges ekonomi – statistiskt perspektiv.”

Johannes Holmberg, an economist at SCB, notes, “The Swedish economy continues to move relatively slowly. The overall picture is that many indicators neither increase nor decrease; trend curves mostly move sideways.”

The economic journal provides an overview of the economic situation based on statistical data, including an update on the economic cycle clock with new statistics. The issue includes an in-depth article describing the factors driving employment growth in the Swedish economy. Here’s a brief summary of the content in this month’s issue:

Economic Cycle Clock Indicates Weakness

The economic cycle clock indicates a persistently weak economic situation, with the majority of indicators still in the recession phase, where 7 out of 13 indicators are situated. The situation has remained largely unchanged since July, with 10 indicators below the trend.

Most Indicators Below Long-Term Trends

Several indicators continue to lag behind their long-term trends, emphasizing the protracted nature of the economic challenges.

Service Industries Propel Employment Growth

Employment in the Swedish economy has seen growth in recent years, although the pace has slowed. The overall trend remains positive in most industries, with the service sector acting as a driving force. This sector, particularly employing individuals with pre-secondary education, has been a key contributor to employment growth over the past two years.

https://www.scb.se/hitta-statistik/statistik-efter-amne/nationalrakenskaper/amnesovergripande-statistik/sveriges-ekonomi-statistiskt-perspektiv/pong/statistiknyhet/sveriges-ekonomi–statistiskt-perspektiv-nr-10-2023/


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