Sweden's Economy Surpasses Growth Expectations in 2024

Sweden's GDP grew 0.8% in Q4 2024, exceeding forecasts and achieving a 1.0% increase for the year. Exports, investments, and household consumption drove growth, contrasting the slow economic pace of previous years. The positive figures may influence the central bank's policy decisions in upcoming meetings.

Sweden's economy experienced a pleasant surprise as the gross domestic product (GDP) increased by 0.8% in the fourth quarter of 2024, surpassing previous forecasts. Final data from the Statistics Office on Friday reflected a 2.4% growth compared to the same period last year.

The annual economic growth rate reached 1.0%, driven by exports, gross fixed capital formation, and household consumption, countering the sluggishness of prior years. Analysts had expected quarterly growth of just 0.2% and an annual increase of 1.1%.

The central bank, which has lowered rates multiple times since last spring, is likely to cease policy easing as the robust GDP figures align with its forecasts. Officials are set to discuss monetary policy again on March 20.

(With inputs from agencies.)