Swedish GDP Soars

Sweden’s economy grew at a considerably faster pace last quarter than predicted by analysts, adding pressure on the central bank to focus on the timing of an exit from years of extreme monetary stimulus. GDP grew 1.7% in the second quarter from the first three months of the year, according to preliminary figures, almost double the 0.9% estimate in a Bloomberg survey of economists. The economy expanded 4% from a year earlier, compared with an estimated 2.7%. A separate set of data on Friday showed that annual retail sales rose more than expected by analysts in June, while household credit growth, unemployment and manufacturing confidence all came in stronger than predicted. Scandinavia’s biggest economy is growing faster than the European Union on average, powered by an export industry that includes global icons such as Ikea, Volvo and Electrolux. Meanwhile, negative interest rates continue to support households. The central bank has made clear it’s unlikely to deviate too far from ECB policy, with rates set to stay very low for a long time, despite Sweden’s strong economy.