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GDP growth triples expectations

Sweden's economy beats the forecast

Updated tisdag 31 juli 2012 kl 13.21
Published måndag 30 juli 2012 kl 09.49
Swedish economic growth defies predictions
(4:27 min)
Sweden's GDP growth per quarter since 2000. Photo: Statistics Sweden

Sweden's GDP grew by 2.3 percent during the second quarter compared to the same period last year, according to figures released Monday by Statistics Sweden. The number is nearly triple to what economists had expected, the news agency Reuters reports.

Exports, which went up by 1.7 percent, were a major cause for the increase. Imports, on the other hand, decreased slightly, while employment went up by 0.4 percent.

"Industry and exports seem to have fared a little better than we had anticipated," says Jesper Hansson, head of forecasts at the Institute of Economic research.

"Obviously we have not been as affected by the European crisis as expected," he tells the news agency TT.

The unexpectedly strong GDP figures will boost the Central Bank's growth forecast, which could make it difficult for the bank to lower its key repo interest rate in September, as economists have expected.

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