Economic growth revised down to 5.1%
Sweden’s second quarter gross domestic product (GDP) growth was revised down slightly to 5.1 percent year-on-year, on Wednesday, but the data suggests the economy is still steaming ahead.
The figures from Statistics Sweden seem to reconfirm that the new centre-right government of Fredrik Reinfeldt has inherited a strong economy which allows scope for planned income and real estate tax cuts.
According to the report, second quarter growth, which was revised down from 5.5 percent, was driven mainly by strong domestic demand and high investments.
Swedes are buying more - household consumption rose 3.2 percent year-on-year, while investments jumped 7.9 percent.
Reinfeldt’s Alliance of centre right parties won Sunday’s election mainly on promises to create more jobs. While growth has surged over the last 18 months, productivity has also risen, meaning people are working more and companies have not needed to take on more workers.
Today’s report suggests that trend is continuing with the number of employed rising only 1.8 percent, while hours-worked rose by 1.6 percent.
Meanwhile, Sweden’s National Institute of Economic Research said that if workers and employers showed restraint in setting wages over the next couple of years, the Moderate-led government could see its job promises realised.