Robust trend in Sweden's Q3 GDP

The surge in Sweden's exports of services and low imports likely caused an uptick in GDP growth in recent quarters. The labor cost was likely low, which is why Riksbank might feel low inflation pressure.

The importance of exports of services and economy continues to grow, and the domestic productions meets increase in demand to a larger extent. In this quarter, there was continuation in rise in the exports of services, which indicates that goods exports saw some rebound.

Imports of goods bounced, putting pressure on GDP growth. There was continuous growth in government consumption and fixed income. Housing is the main driver for investments, other sectors, including manufacturing, saw a rise in their investments as well.

"We see Q3 GDP growth at 0.3% q/q and 3.5% y/y, in line with the Riksbank's forecast. The good news is that exports and investments showed good growth. The bad news is that household consumption almost stagnated", says Nordea Bank in a research note.