Sweden’s economy shrank in the fourth quarter, revised from a recovery reported initially, the latest data from Statistics Sweden showed on Thursday.

Gross domestic product decreased 0.1per cent sequentially in the fourth quarter, the same as in the previous quarter.

In the flash report, the rate of change was an increase of 0.1per cent.

In the second quarter of 2023, GDP showed a decline of 0.7 per cent.

Thus, the country remained in recession as GDP contracted for the third straight quarter.

The downturn was mainly due to a decrease in gross fixed capital formation and net exports, the agency said.

On the expenditure side, household consumption rose 0.7 per cent, and general government expenditure increased 0.5 per cent.

Meanwhile, gross fixed capital formation dropped 1.8 per cent, and net exports contributed negatively to GDP by 0.5 percentage points.

Compared to last year, GDP fell 0.2 per cent in the December quarter, though slower than the 1.1 per cent decline in the September quarter.

Separate official data showed that retail sales rose 0.4 per cent monthly in January versus a flat change in December.

Sales of durable goods grew 1.3 per cent over the month, while those of consumables decreased by 0.3 per cent.

(dpa/NAN)