Sweden’s Economy Slows as Investments, Public Spending Stall

Gross domestic product rose 0.5 percent from the previous quarter and posted an annual rate of 2.8 percent, Statistics Sweden said. Analysts had estimated growth of 0.5 percent and 3.1 percent, respectively. The GDP data is bad news for the Riksbank since it "needs a strong domestic economy for inflation to rise," said Torbjorn Isaksson, chief analyst at Nordea Bank AB. A number of analysts expect the Riksbank to extend its government bond purchases. Nordea and Danske Bank A/S also expect it to cut the benchmark repo rate, from -0.50 percent to -0.60 percent. (Bloomberg)



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