The Swedish economy grew significantly more than expected in the second quarter of the year. Sweden’s GDP increased by 1.6 percent compared to the previous quarter, according to new figures from Statistics Sweden (SCB).

The outcome was stronger than the market’s expectations. Forecasts had predicted an increase of about 1.2 percent, according to Dagens industri.

Compared to the same quarter last year, GDP rose by 3.3 percent, calendar-adjusted. This marks a clear acceleration after the first quarter of the year, when the economy declined slightly. The previous decrease of 0.2 percent has meanwhile been revised to 0.1 percent.

Broad-based growth

Growth came from several parts of the economy. Household consumption increased by 0.9 percent, with food and furniture in particular contributing to the rise. Gross fixed investments rose by a full 3.5 percent, thanks in part to higher investments in machinery, equipment, and weapons systems.

Foreign trade also made a clearly positive contribution. Exports increased by 1.0 percent, while imports only rose by 0.1 percent. Net exports thus contributed 0.5 percentage points to GDP growth. However, inventory investments pulled development down by 0.4 percentage points.

“GDP grew broadly in the second quarter, with strong contributions from gross fixed investments, exports and household consumption,” says Jessica Engdahl, head of section for National Accounts at SCB.

The value added of the business sector increased by 1.8 percent at the same time. The industrial sector performed particularly strongly and grew by 3.0 percent, while service production increased by 2.0 percent. Labor productivity in the business sector rose by 1.3 percent.

“Now we’re rolling again”

The unexpectedly strong figures were quickly met with positive reactions among economists.

“Wow – what broad-based GDP strength! Now we’re rolling again!” wrote SEB’s senior economist Robert Bergqvist, according to Di.

Households’ economic situation also shows signs of improvement. Real disposable income—that is, income adjusted for price changes—was 1.0 percent higher than in the corresponding quarter in 2025.

The figures reinforce the view that the economic cycle has turned after last year’s weak performance. Already earlier in August, SCB noted that the Swedish economy had strengthened during 2026 and that most of the agency’s business cycle indicators were in the expansion phase.