STOCKHOLM, Jan 28 (Reuters) – Sweden’s economy grew more than expected in the fourth quarter, expanding 1.4% from the previous three months and 6.2% from the same quarter a year ago, Statistics Office data showed on Friday.
Analysts in a Reuters poll had forecast growth of 1.0% and 5.4% respectively.
Sweden’s economy has surged back from the effects of the coronavirus pandemic and new curbs prompted by another surge in infections that hit late last year came too late to affect growth.
Companies have adapted to rolling pandemic disruptions and many analysts expect the fresh COVID-19 wave to have a limited effect on the economy, while the government expects the bulk of the restrictions to be removed in early February.
In its most recent forecast, the government said it expected the economy to expand 3.4% in 2022 with Omicron only marginally reducing the pace of growth.
Uncertainty is high, however, with supply shortages and bottlenecks still causing problems for companies globally.
Despite the strong recovery and inflation running at levels not seen for nearly 30 years, the central bank has forecast it will hold monetary policy broadly unchanged this year.
Analysts, however, expect the Riksbank to allow its balance sheet to start shrinking and some see the chance of a rate hike toward the end of the year.
(Reporting by Simon Johnson; Editing by Johan Ahlander and John Stonestreet)
