Swedish GDP likely to be revised down

Monday, 06 August 2012
Swedish GDP growth took every one by surprise and up till now there are still doubts around as to if the GDP figures are for real.

Since production in the service sector increased by 1.1 percent in June compared to June last year, being less than expected, Nordea warns that last week's unexpected strong GDP figures may be revised down.

"This is considerably weaker than the figures that have gone into the GDP for the second quarter," says the bank chief analyst Torbjörn Isaksson.

Nordea had anticipated that services output would increase by three percent in June, since preliminary data showed that the Swedish economy grew by 2.3 percent last quarter. But now that figure has changed. But it remain as to how much revision will be carried out and it is too early to tell where the numbers will land, according to Torbjorn Isaksson.

The weaker growth in services, according to SCB's figures, is a sign that the domestic sectors of the economy is affected by what happens in other countries, such as the euro crisis. But Torbjorn Isaksson, stress however that that Sweden is strong.

"Although it is expected that GDP for the second quarter will be revised down, the Swedish economy is surprisingly resistant to what is happening in our world," he says.
by Scancomark.se Team

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