Swedish Economy Declines by 0.2% in May 2025
Sweden's GDP fell by 0.2% in May 2025, reflecting anticipated economic weakness.
Key Points
- • Sweden's GDP decreased by 0.2% in May compared to April.
- • The decline is due to lower production in service sectors and weaker household consumption.
- • This economic downturn was forecasted by Bloomberg and aligns with recent trends.
- • Year-over-year, GDP for May 2025 was 0.5% higher than May 2024.
Sweden's economy faced a decline in May 2025, with the gross domestic product (GDP) decreasing by 0.2% compared to April, as reported by Statistics Sweden (SCB). This downturn was anticipated and aligns with forecasts from Bloomberg that also projected a 0.2% drop.
The decrease is chiefly attributed to reduced production in the service sectors and among public authorities. Additionally, economist Mattias Kain Wyatt highlighted that drops in household consumption and a weakening trade balance contributed to the overall economic contraction. In April, the GDP had seen an increase of 0.4%, indicating a significant change within just a month.
Despite the drop, year-on-year figures showed modest resilience, with a calendar-adjusted GDP for May 2025 being 0.5% higher than the same month in 2024. This context suggests that while the current economic performance is struggling, there are some indicators of stability compared to the previous year.