FX.co ★ Sweden Q4 GDP Growth Revised Higher

The Swedish economy expanded by 0.5% quarter-on-quarter in Q4 2025, outperforming the initial estimate of 0.2% but slowing from a downwardly revised 0.8% increase in the previous quarter. Net trade weighed on GDP, as exports declined by 1.2% (compared with a 1.1% drop in Q3), driven by weaker goods exports, while imports were unchanged (0.0% vs 0.1%). Inventory changes also subtracted 0.5 percentage points from growth, with falling industrial inventories making the largest negative contribution. Household consumption growth held steady at 0.9%. In contrast, government spending accelerated to 2.3% (from 0.2%), supported by higher central government consumption, and fixed investment rose by 2.9% (from 0.8%), mainly reflecting increased spending on machinery, equipment, and weapon systems. On an annual basis, GDP grew 2.1% in Q4, down from 2.6% in Q3 but above the flash estimate of 1.8%. For the full year 2025, the Swedish economy expanded by 1.5%.