Sweden’s Economy Expands More Than Estimated

Sweden’s Economy Expands More Than Estimated

Sweden’s economy grew more than estimated in the last quarter of 2015, after the central bank presented record stimulus to defend its inflation target.

According to a statement released by Statistic Sweden, the economy grew 1.3 percent from the third quarter beating 0.7 percent forecasted by economists surveyed by Bloomberg.

Year on year, it grew 4.5 percent compared with a 3.6 percent predicted. The Krone surged 0.4 percent to 9.32 per euro.

Fixed investment rose 2 percent in the fourth quarter, while imports rose 2 percent and exports surged 2.9 percent. Consumer spending rose 0.9 percent. In 2015, the economy grew by 4.1 percent.

“Everything looks very good,” Roger Josefsson, chief economist at Danske Bank, said by telephone. “It’s a strong number and it’s welcome that exports were so strong as exports have been missing in the economic recovery since the financial crisis.”

The central bank has previously cut interest rates below zero and introduced QE program to stimulate the economy in an effort to meet its 2 percent inflation target.