Sweden's economy shrinks in the third quarter to signal that a recession may have hit the country

Swedens economy shrank in the third quarter of 2023 to mark the second time of contraction and signal that a recession may have hit the country.Data released Wednesday by Statistics Sweden showed that the countrys gross domestic product declined by 0.3 per cent in the period ending in October.The GDP decreased for the second quarter in a row.

Sweden's economy shrank in the third quarter of 2023 to mark the second time of contraction and signal that a recession may have hit the country.

Data released Wednesday by Statistics Sweden showed that the country's gross domestic product declined by 0.3 per cent in the period ending in October.

"The GDP decreased for the second quarter in a row. The downturn in the economy was broad, but was held back somewhat by strong service exports," said Jessica Engdahl, section manager at the National Accounts with the statistical agency.

The decline is mainly explained by inventory liquidation and lower household consumption. Engdahl added that household consumption expenditure had decreased for the fifth consecutive quarter.

Compared to the third quarter of 2022, GDP decreased by 1.4 per cent.

Two consecutive quarters of contraction is a common definition of recession, though economists on the eurozone business cycle dating committee use a broader set of data, including employment figures.

Sweden is a member of the European Union, but doesn't use the Euro currency.