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29.04.202606:09:32UTC+00Swedish Economy Posts Surprise Contraction in Q1

The Swedish economy contracted by 0.2% quarter-on-quarter in the three months to March 2026, defying expectations of a 0.1% expansion and reversing the 0.5% growth recorded in the previous quarter. This is the first quarterly decline in a year, driven primarily by weaker activity in January and February. However, economic activity picked up in March and has now returned to a level comparable to that seen at the end of last year, according to Neda Shahbazi, economist at Statistics Sweden. On an annual basis, GDP grew by 1.6%, marking the weakest pace in a year and falling short of both market forecasts and the 2.1% increase registered in the prior quarter.

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