Sweden’s economic growth in third quarter beats expectations

Preliminary data of Statistics Sweden showed that the country's economic growth was double than the rate economists had predicted in the third quarter of 2015.

According to Bloomberg, Statistics Sweden announced that the economy grew 0.8 percent from the second quarter this year.

Bloomberg survey of analysts forecasted the growth at 0.4 percent. The annual growth showed 3.9 percent of rate while the analysts forecasted 3.4 percent. The krona rose 0.4 percent to 9.216 per euro.

As the export sector is seemed to perform well, the economy is expected to have a strong growth rate in Sweden in the third quarter. Sweden exports rose by 2.1 percent and imports moved up 2.1 percent.

Analysts at Nordea Andreas Wallstroem said that the Statistics Sweden's report shows broad and high growth in the Swedish economy and the development is stronger than the Riksbank had in its forecast.

The high economy growth will reduce the likelihood of the Sweden's central bank Riksbank easing monetary policy further. But the market effect of what the does on Thursday will be crucial, Wallstroem added.

However, an economist at Capital Economics, Jessica Hinds said that Riksbank's decision making is driven more by the ECB (Europe Central Bank), which is likely to increase its policy support on Thursday, according to RTT News.

Hinds pointed out that headline inflation remains close to zero, Hinds added that the GDP data would likely not to make much different. Hinds mentioned that the strengthening of the krona may soon start to undermine exports.

Riksbank Deputy Governor Cecilia Skingsley said the strong economy growth in Sweden means the bank won't automatically cut rates at its meeting next month even if the EBC delivers more stimulus.

Whether the central bank will decrease easing monetary policy next month depends on how the trade-weighted krona develops compared with the Riksbank's forecast, said Michael Grahn, an analyst at Danske Bank.

Sweden GDP rose a working day adjusted 3.9 percent in the third quarter year on year. Its the fastest expansion since the first quarter of 2011, which the growth was 5.2 percent.

According to EconoTimes, the high growth of Sweden's economy also led by the increase in consumer spending. The sales increased by 5.0 percent year on year in the reference month.

Sweden retail sales in the economy continued its upward trend in October. On the contrary, the consumer sentiment is moving in a downward trend over the past two years.

Sweden's private consumption rose 0.7 percent and public spending edged up 0.1 percent, while the country's fixed capital increased 1.2 percent.