(Bloomberg) -- Sweden’s output unexpectedly expanded during the third quarter in what could prove a welcome sign to a central bank that’s deployed four interest-rate cuts this year to kickstart the spluttering economy.
Gross domestic product grew by 0.3% in the three months through September compared with the prior period, according to data published by Statistics Sweden Friday. The median forecast in a Bloomberg survey was for a 0.1% drop from the previous three months, in line with an initial estimate that’s known for large revisions.
The development is “weakly positive” compared with the flash estimate, according to chief economist Michael Grahn at Danske Bank A/S. The outcome is “probably in line with Riksbank’s ‘weakness’ thinking, supporting its monetary policy stance.”
The Riksbank this month decided on a jumbo cut of 0.5 percentage points, signaling that further moves lower are possible in December and in the first half of next year. The GDP data also showed stagnation in the second quarter, revised from an earlier-reported decline, meaning the Swedish economy appears not to have contracted this year.
--With assistance from Joel Rinneby.
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