FX.co ★ Sweden's Economy Contracts as GDP Slips to -0.1% in September

In a surprising shift, Sweden's GDP growth has contracted to -0.1% for September 2025, a stark contrast to the 1.2% rise reported in August. This month-over-month comparison reflects a notable downturn for the Scandinavian economy, which had previously experienced modest yet positive growth.

The latest figures, updated as of October 29, 2025, indicate that the Swedish economy is feeling the strain of broader global economic pressures. In August, the nation enjoyed a 1.2% rise in GDP, suggesting stability and resilience. However, the downturn in September underscores a reversal that analysts are keeping a close eye on, considering the ripple effects it could have on employment and domestic investment.

Economists are now speculating on the potential causes of this economic slowdown, ranging from geopolitical tensions to changes in trade dynamics and internal economic policies. The contraction in GDP is a signal for swift government intervention and strategic planning to steer Sweden back towards economic growth. The coming months will be critical in determining whether this dip is a temporary fluctuation or the sign of a more prolonged economic challenge for the country.