60600
GDP rose 2.3% from a year earlier.
GDP rose 2.3% from a year earlier.

Sweden’s Strong Growth Gives Hope to Central Bank

Sweden’s Strong Growth Gives Hope to Central Bank

Sweden’s already piping hot economy racked up firm growth in the fourth quarter, an outcome that was roughly in line with market expectations and that reinforced the spotlight on the central bank and its ultra-loose monetary policy.
Gross domestic product grew 1% in October through December compared with the previous quarter and rose 2.3% from a year earlier, the statistics office said on Tuesday. Economists polled by Reuters had expected a 0.9% expansion on the quarter and a 2.4% rise from a year earlier. GDP grew 3.3% for the full year 2016 compared to the previous year.
“The Swedish economy is doing well. That picture is enhanced (by today’s figures) and it is also the image we get from statistics received earlier in the year,” said Elisabet Kopelman, economist at Swedish bank SEB.
The outcome was also well above the Swedish central bank’s own outlook where it had forecast year-on-year growth of 2.15% in the final three months of last year.
Separately, statistics showed retail sales rose 2.2% year-on-year in January and 1.3% from the previous month, an outcome that was also above analysts’ expectations.
Sweden’s central bank held rates unchanged at -0.50% earlier this month and retained its view that more cuts could come, surprising some analysts who had expected it would signal that five years of ever looser policy had come to an end. “We believe that we will eventually see a reversal in monetary policy, and this can provide support for future rate hikes,” Kopelman said.
Sweden’s economy has been running on all cylinders, thanks in part to investments designed to address a housing shortage and care for a record number of immigrants from war-torn countries like Syria and Iraq, Bloomberg reported.
 “Exports are picking up” thanks to a weak currency and an improved outlook for the global economy, Robert Bergqvist, chief economist at SEB AB in Stockholm, said in a telephone interview. That raises the likelihood that the central bank will start raising rates already in December. That’s sooner than the Riksbank’s forecast of early next year.
Despite the economy slowing from its 2015 peak, the Riksbank predicts inflation will pick up and stabilize around the target next year. Since its Feb. 15 meeting, a number of Riksbank board members have stressed that they’re not in a hurry to tighten policy until inflation is back on firm ground. The Riksbank will publish minutes from that meeting on Wednesday.

Short URL : https://goo.gl/4NqLUP
  1. https://goo.gl/GYxqdG
  • https://goo.gl/4JbmDV
  • https://goo.gl/bEf9T0
  • https://goo.gl/vtN9vP
  • https://goo.gl/WxbsoL

You can also read ...

World GDP is expected to advance 3.5% in 2017—its best year since 2011—and 3.7% in 2018.
Nearly 10 years after the financial crisis brought the global...
Supporters of EU-Mercosur Free-Trade Pact Push for Deal
Supporters of a free trade pact between the EU and the...
The OECD believes that tax evasions cost governments around the world as much as $240 billion a year in lost revenue.
They have revolutionized the way people live, but are US tech...
Kuwait Needs $100b Over 5 Years to Cover Deficit
Kuwait will need $100 billion of additional financing over the...
Emmanuel Macron (L), French Labor Minister Muriel Penicaud (C) and Jean-Claude Juncker.
The EU is trying to present itself as more socially just,...
China to Help Shortfalls in Pension Funds
China on Saturday announced a pilot program to help pension...
Few Signs of Progress in NAFTA Talks
Negotiations in Mexico to update NAFTA have not made much...
Goldman Predicts Four Rate Hikes in US
The US economy is heading into 2018 with strong momentum that’...

Add new comment

Read our comment policy before posting your viewpoints

Image CAPTCHA
Enter the characters shown in the image.

Trending

Googleplus