GDP fell 0.2 percent in the first quarter compared with the fourth quarter of 2025, which corresponds to annual growth of 1.6 percent.
Analysts had on average expected quarterly growth of 2.2 percent at an annual rate, up from 1.8 percent in the fourth quarter of 2025, according to the Bloomberg news agency.
"Activity in the Swedish economy increased in March after declines in January and February and is now back at a level similar to that at the end of last year," said Neda Shahbazi, an economist at Statistics Sweden, in a press release.
Retail sales in March increased by 3.1 percent, with the biggest boost in the non-durable goods sector.
