Sweden Enters the Brink of Recession! The economy is collapsing

Jakarta –

The Swedish economy fell into recession after Gross Domestic Product (GDP) continued to decline for two consecutive quarters. According to the Swedish Statistics Agency, the country’s economy will experience a contraction of 0.3% in the third quarter of 2023.

“GDP declined for two consecutive quarters. The decline in GDP was caused by a decrease in inventories and household consumption,” said Head of Statistics at the Swedish National Accounting Department, Jessica Engdahl, quoted from The Local SwedenWednesday (29/11/2023)

He said the decline was general, but could still be overcome with strong exports and services. Indeed, the country’s exports increased by 1.4% and imports fell by 1.5%. This makes a positive contribution to GDP of 1.5%.

Meanwhile, in the third quarter of 2023, household consumption decreased by 0.6% and government spending remained unchanged. In addition, the decline in industrial inventories contributed negatively to GDP by 1.4%.

From the property side, housing investment continues to decline and other building investments also make a negative contribution to GDP. Then household consumption fell by 0.6% compared to the third quarter of 2022. The public administration deficit is also quite large compared to the same period last year.

In 2023, the country will experience a deficit of 5.9 billion kronor. Meanwhile, in 2022, it will experience a surplus of 10.5 billion kronor.

In previous projections, Sweden’s economic growth was estimated to stagnate in the third quarter of 2023. Meanwhile, when compared on an annual basis, Sweden’s economic growth in the third quarter of 2023 experienced a contraction of 1.4%, greater than the previous projection of 1.2%.

(fdl/fdl)