In spite of the coldest and snowiest December in 100 years Sweden’s gross domestic product (GDP) grew by 7.3 per cent in the fourth quarter of 2010 compared to same period last year.
Compared with the third quarter of last year, GDP grew by 1.2 percent, according to StatisticsSweden (SCB). This is the highest Swedish growth ever measured. GDP figures were higher than analysts had anticipated. According to Reuters, they expected on average, a growth of 7.0 per cent annually and 1.0 percent from the last quarter.
During the full year 2010, GDP grew by 5.5 percent from the year before, the largest increase since 1970. In 2009, GDP shrank by 5.3percent. It was household consumption which gave the largest contribution to GDP growth, according to StatisticsSweden.
With the latest GDP figures showing a growth of 7.3%, economic analysts are waxing lyrical:
Annika Winsth, chief economist at Nordea:
The Swedish economy is growing across the board. The recovery continues with positive signals also from the labor market. It means that the Riksbank will most likely continue to raise rates. The labor market is developing well and that the hours worked increases mean that households are well equipped for future interest rate hikes. That you get such a strong figure, a growth of over seven percent, also creates a positive psychological effect and a confidence in the Swedish economy which is important. This is something completely different than when the crisis was at its worst.
SBAB’s chief economist Tomas Pousette:
We knew that growth was strong but did not anticipate anything this strong. We expected a number around 6.5%. The economy is at full speed. But it is still in the vicinity of what the Riksbank has anticipated.
Finance Minister Anders Borg:
In the budget we expected that we would land on 4.8 percent growth for 2010, and now we arrive at 5.5 percent. This is a stronger growth than we expected. There is a real challenge ahead for us to cope with both strong growth and low unemployment without creating imbalances.
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