Sweden’s economy contracted by 0.2% quarter-on-quarter in Q1, marking the first decline in a year.

(1) Sweden's economy contracted by 0.2% quarter-on-quarter in Q1, confirming the preliminary figure and exceeding the market's expected decline of 0.1%. The previous figure was revised to a 0.8% increase, marking the first contraction in a year. (2) Government spending fell (down 2.1%, compared to a 2.7% increase in Q4), and gross fixed capital formation also declined (down 2.3%, compared to a 4.5% increase in Q4), mainly due to reduced construction investment. (3) Net trade also had a negative impact, as the rise in imports (up 2.5%, compared to a 0.2% increase in Q4) exceeded the increase in exports (up 2.2%, compared to a 0.8% decrease in Q4). During the same period, household consumption continued to grow (up 0.6%). (4) On an annual basis, GDP grew by 2%, revised up from the initial 1.6%, but below the market expectation of 2.3% growth. The annual growth rate was unchanged from the previous quarter.