Sweden’s exports improve markedly in September, but likely to weigh on GDP growth in Q3

Sweden’s exports improved notably in September. Exports of goods totalled SEK 107.7 billion in t he month, whereas imports of goods totalled SEK 104.5 billion. The trade balance of the nation improved in September to a surplus of SEK 3.2 billion after registering record low reading in August of a deficit of SEK 9.4 billion, according to Statistics Sweden.

On a year-on-year basis, exports were up 2 percent in value, whereas imports rose 1 percent year-on-year in value. Exports had dropped 1 percent year-on-year in August, whereas imports had risen 6 percent.

Trade with nations outside the European Union amounted to a surplus of SEK 15.1 billion, whereas the EU trade amounted to a deficit of SEK 11.9 billion. The net trade deficit, on a seasonally adjusted basis, totalled SEK 0.4 billion, as compared with the deficit of SEK 0.5 billion in August.

For the January to September period, the value of exports dropped 1 percent year-on-year, whereas the imports value rose 1 percent. Exports totalled SEK 867.5 billion, whereas imports amounted to SEK 870.4 billion. This led to a deficit of SEK 2.9 billion for the January-September period.

Today’s data showed that exports rose significantly in September, but for the third quarter, they continue to be sluggish and unchanged, noted Nordea Bank in a research report. The continuous healthy domestic demand is supporting the strong growth in imports. Net exports are likely to be a drag on the Swedish economic growth in the third quarter, according to Nordea Bank.

Indicators for Sweden’s exports and global PMIs have rebounded in recent months, although from low levels. Overall, the decline in exports appears to have stopped in the September quarter. Hence, there is possibility for certain improvement in the fourth quarter, stated Nordea Bank.