Sweden's GDP Rebounds More Than Estimated In Q1

(RTTNews) - Sweden's economy expanded more than initially estimated in the March quarter after contracting in the previous quarter, preliminary figures from Statistics Sweden showed on Tuesday.

Gross domestic product advanced 0.6 percent sequentially in the March quarter, reversing a 0.5 percent fall in the December quarter. The latest rate of growth was revised up from a 0.2 percent rise reported initially on April 27.

According to the agency, the improvement was primarily explained by a rise in inventories and a rapid expansion in exports of commodities.

General government spending increased by 0.5 percent over the quarter, while gross fixed capital formation also expanded by 0.5 percent, driven mostly by higher investments in machinery, equipment, and  weapon systems.

Data showed that changes in inventories contributed to GDP growth by 0.6 percentage points. Both exports and imports climbed by 1.2 percent and 0.7 percent, respectively.

At the same time, household final consumption posted a decline of 1.2 percent due to decreased expenditure on transport, non-resident household consumption, and food consumption.

On a yearly basis, the economy rebounded 0.8 percent in the first quarter after a 0.4 percent decline in the preceding three-month period. In the flash report, the rate of expansion was 0.3 percent.

Separate official data showed that the country's trade deficit narrowed to SEK 2.7 billion in April from SEK 3.6 billion in the corresponding month last year as exports grew faster than imports. In March, the trade balance showed a surplus of SEK 8.5 billion.

In April, exports were 4.0 percent higher compared to last year, and imports rose by 0.3 percent.

Trade in goods with countries outside the EU resulted in a surplus of SEK 18.6 billion, while EU trade showed a deficit of SEK 21.3 billion.