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STOCKHOLM (AP) — Sweden’s economy in the third quarter of 2023 marks the second period of contraction and signals that a recession may have hit the country.
Data released Wednesday by Statistics Sweden showed that the country’s gross domestic product declined by 0.3% in the period ending in October.
“The GDP decreased for the second quarter in a row. The downturn in the economy was broad, but was held back somewhat by strong service exports,” said Jessica Engdahl, section manager at the National Accounts with the statistical agency.
This drop is basically explained by the liquidation of inventories and the fall in household income. Engdahl added that spending on family admissions declined for the fifth consecutive quarter.
Compared to the third quarter of 2022, GDP decreased by 1.4%.
Two consecutive quarters of contraction is a common definition of a recession, even if economists on the Eurozone’s Business Cycle Dating Committee use a broader body of knowledge, adding employment figures.
Sweden is a member of the European Union, but uses the euro.
The Associated Press