THE Swedish economy grew more than expected in the first quarter despite high inflation and rising interest rates, official statistics showed today.

The top Nordic economy expanded by 0.6% in the first three months of the year, avoiding a technical recession following a 0.2% contraction in the fourth quarter of 2022.

“The upturn is mainly explained by an increase in inventories and by a strong growth in the export of goods,” Statistics Sweden said in a statement.

Analysts were on average expecting 0.1% growth, Bloomberg reported. 

A preliminary estimate published by Statistics Sweden at the end of last month had put growth at 0.2%. 

Year-on-year, GDP grew by 0.8% in the first quarter of 2022, against the 0.3% preliminary figure.

The upturn comes despite the central bank’s rate-hike campaign against inflation, which is still hovering around 10%.

According to its April forecast, the central bank expects the Swedish economy to contract 0.7% for this year as a whole. – AFP, May 30, 2023.