Swedish economy grows by 0.8%

Sweden’s economy grew by 0.8% in the three months to October, in line with economists’ forecasts, amid rising capital investment.

Nevertheless, earlier growth figures were downwardly revised, meaning that the economy was growing from a lower base than previously thought.

Year-on-year growth of 2.9% was behind economists’ expectations of 3.5%.

Official figures for the first two quarters of 2017 along with the full-year tally for 2016 were all trimmed.

Warning

Sweden’s financial watchdog also issued a warning on household debt on Wednesday, pointing to continued rises.

“The risks associated with high house prices and large household debt continue to be elevated,” said the Swedish Financial Supervisory Authority in its twice-yearly stability report.

The Riksbank, Sweden’s central bank, will decide whether to end the country’s bond-buying programme at its next monetary policy meeting in December. However, interest rate hikes appear some way off.

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