FX.co ★ Sweden's Economy Contracts as GDP Slips in May

In a surprising turn, Sweden’s GDP Growth Rate in May 2025 revealed a contraction, marking a significant shift from the modest growth seen in April. Released on July 10, the latest figures show that Sweden’s GDP declined by 0.2% in May compared to the previous month, a stark contrast to the 0.4% growth recorded in April.

This month-over-month decline indicates mounting challenges in the Swedish economy after April's growth, which was seen as a positive rebound. Economic analysts are closely watching these figures as they reflect on the broader implications for Sweden's financial stability amidst potential global economic pressures and domestic challenges.

The unexpected drop raises crucial questions about the underlying factors contributing to the shift and whether this trend might continue in the coming months. As Sweden grapples with this economic contraction, policymakers and investors alike are likely to reassess their strategies to bolster the economy moving forward. With potential implications for everything from consumer confidence to fiscal policy, May's GDP figures paint a cautionary tale for Sweden's economic trajectory in 2025.