Swedish economy grew by 2.4 percent in the third quarter compared to the corresponding quarter last year, according to new figures from the Statistical Central Bureau (SCB).
It was significantly stronger than expected. Analysts had expected growth in gross national product (BNP) at an annual rate of 1.6 percent, according to a compilation of forecasts made by Bloomberg.
The recovery appears to have shifted up after the summer, especially in August. Swedes' consumption seems to have gained better momentum.
Optimistic economists
And there are good reasons to believe that the recovery will continue to shift up, says Danske Bank's chief economist Susanne Spector.
We are optimistic about the growth prospects for next year. It's about a lot of money coming into the economy, says colleague at Nordea, chief analyst Torbjörn Isaksson.
The labor market is still uneven.
But there are signs that we have the worst behind us, even there, he says.
Susanne Spector notes that both fiscal policy (autumn budget) and monetary policy (interest rate cut) presented in September were made based on a premise that does not seem to have been very consistent with today's statistics.
According to today's figures, the recovery is significantly better on its way than what both the government and the Swedish Central Bank assessed when they designed their economic policy.
Can go fast
More interest rate cuts are no longer on the agenda among the assessors, rather the opposite.
Is there a risk that both the government and the Swedish Central Bank have taken unnecessary measures?
There is a risk that the policy becomes too expansive, says Spector.
And then can an interest rate hike come faster than otherwise?
Then an interest rate hike may become relevant sometime during next year and come faster than it otherwise would have, she says.
But it's still a bit away, she adds.
Nordea's Torbjörn Isaksson says that the risk exists, but is not large. He thinks that the Swedish Central Bank's last interest rate cut, in September, came at the last minute, that it may have been unnecessary in this situation. But an interest rate hike next year to possibly slow down an economy that is going "too well" with rising inflation as a result, he does not see.
It cannot be ruled out entirely, but it should not be like that, no.
