Sweden's Economy Outperforms Forecasts in Q2 as Consumer Mood Brightens

Sweden's economy expanded at a faster clip than anticipated in the second quarter of 2026, according to final figures released on Friday. Gross domestic product rose 1.6% from the previous three-month period, surpassing the 1.4% growth economists had projected.

On an annual basis, GDP was up 3.3% compared with the same quarter a year earlier, again exceeding the 2.5% forecast. The Statistics Office attributed the performance to broad-based gains across several sectors.

"The second quarter saw a broad-based increase in GDP with significant contributions from gross fixed capital formation, exports and household consumption expenditure," the agency said in a statement.

Household consumption climbed 0.9% quarter-on-quarter, while gross fixed capital formation — a measure of investment — jumped 3.5%. Real disposable incomes for households also rose, up 1.0% year-on-year.

The upbeat data extends to consumer sentiment. A separate survey from the NIER think tank showed confidence rising for a fourth consecutive month, returning to normal levels for the first time since November 2024. The improvement was driven by more positive views on the Swedish economy, both retrospectively over the past year and looking ahead to the next twelve months.

The figures arrive as the government trails in opinion polls ahead of a September 13 general election, offering a measure of economic reassurance.