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Sweden back in recession

Sweden back in recession
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Sweden’s economy unexpectedly slid back into recession in the fourth quarter.

The figures caused the Swedish currency, the crown, to fall.

They also raised questions about how soon interest rates can rise there.

Gross domestic product contracted 0.6 percent in the fourth-quarter from the third.

Economists had forecast a 0.3 percent increase.

The third-quarter GDP figure was revised to show a 0.1 percent quarterly decline from an original 0.2 percent gain, the Swedish government’s statistics office said.

This meant the economy fell back into recession, based on a widely held definition of the term.

Economists were divided over the implications of the numbers.

Some said GDP often gets revised sharply and this did not change the overall economic picture.

Others said this made central bank forecasts for a rate rise this summer look dangerous.

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