The Swedish economy contracted by 0.6% month-over-month in December 2025, reversing an upwardly revised 0.5% growth in the previous month, preliminary estimates showed. The latest figure also marked the sharpest decline since July. “Following strong figures for November Swedish economic activity contracted in the last month of the year. These results show us that the period of growth that we have seen since the second quarter largely continued through the remainder of 2025, if now at a somewhat more modest rate. Figures for all four quarters also give us a first preliminary estimate of annual GDP-growth for 2025 at 1.4 percent”, says Mattias Kain Wyatt, economist at Statistics Sweden. For the fourth quarter as a whole, GDP increased 0.2% compared with the preceding quarter. On a yearly basis, the economy advanced by 0.9% in December, marking the softest growth since March and easing from a downwardly revised 2.2% expansion in the preceding period.

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