GDP of Sweden in 2023 - Expenditure Approach, Sector Output, and Regional GDP

Most estimates for real GDP growth in Sweden for 2022 is 2.4-2.9%, lower than the previous estimates that stand between 3.1% to 3.5% due to a decline in consumption and investment, resulting in two small contractions in the fourth quarter of 2022 and the first quarter of 2023. Sweden’s export-oriented economy, with about 50% of exports going to other EU countries, including 11% to Germany, will be affected if those countries go into recession. We expect real GDP growth in Sweden to go into negative in 2023 due to uncertainty about both domestic and external demand, higher borrowing costs, and the energy crisis. The war is also negatively impacting Sweden’s economy through the trade and inflation channels, with consumer price growth surpassing wage growth in 2022, reducing consumers’ purchasing power and spending. Other risks include a faster than expected rise in intere...