The Swedish economy is showing some signs of improvement in 2025. According to new figures from Statistics Sweden (SCB), economic activity continued to increase during the third quarter of the year, mainly due to higher household consumption, increased investments, and stronger exports.

Economic activity continued to rise during the third quarter of 2025. At the same time, the GDP indicator showed a slight dip in October, which SCB says does not change the overall picture.

– The overall picture of the Swedish economy is positive. In the third quarter, the annual GDP growth was the highest in almost four years, said Caroline Ahlstrand, economist at SCB, in connection with the publication.

Economic indicators point upward

The data is presented in the report Sweden’s Economy – A Statistical Perspective, which summarizes the economic situation based on current statistics. The report also includes an update on the so-called business cycle clock.

According to SCB, the business cycle clock continues to signal a movement toward a stronger economy. In October 2025, five indicators were in the expansion phase. The clearest changes compared to previous months related to household consumption and industrial order intake.

Inflation also appears set to decrease further. Inflation expectations are falling for both one and two years ahead, while remaining stable at a five-year horizon. This is shown by Origo Group’s quarterly survey of inflation expectations among money market participants, labor market parties, and purchasing managers.

When the Tidö parties took office in autumn 2022, inflation was as high as 9.3 percent. Since then, it has dropped sharply to more normal levels.

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