STOCKHOLM, Jan 29 (Reuters) – Sweden’s economy remained sluggish in the final quarter of 2023, growing 0.1% from the previous three month period and unchanged against the same quarter a year earlier, preliminary data from the Statistics Office published on Monday showed.
In December, the economy shrank 0.3% from November, the data showed.
Analysts said the figures pointed to a decline in GDP for the full year of 0.3%.
Sweden’s economy slowed sharply through the middle part of last year, hit by higher rates and surging inflation. Consumption and housing construction have been hit, imports have fallen, but exports have remained a bright spot and the downturn has been relatively mild.
The economy is expected to show little or no growth this year and with the pace of inflation having dropped sharply after peaking at over 10%, the central bank will likely change tack and start cutting interest rates.
The central bank will announce its next policy decision on Thursday.
“A stagnating economy and weak domestic demand, confirms our view that the Riksbank will change course,” Swedbank said in a note. “At Thursday’s monetary policy meeting, the Riksbank is expected to keep the policy rate at 4%, but open the door to cutting the rate path.”
