Swedish retail sales slump

RT.com
02 Apr 2023, 00:13 GMT+10

Inflation and surging lending costs have dented private spending, an official report indicates

Retail sales in Sweden plunged the most on record last month, as inflation and soaring borrowing costs continued to squeeze consumers' spending power.

In February, retail sales in the Nordic region's largest economy slumped 9.4% compared to the same period of last year, driven by a decline in durable goods, which saw the biggest sales drop since 1992, Statistics Sweden reported on Wednesday.

Economists attribute the weak results to persisting pressure on households' real disposable incomes and purchasing power, caused by the highest inflation in 30 years and continued interest rate hikes by the Swedish central bank.

"The current bout of inflation is clearly putting the retail sector under mounting pressure," Nordea economist Gustav Helgesson wrote in a note. "Parts of the retail sector are already in a recession. Today's report reinforces our view that private consumption will contract this year," he added.

Sweden is going through one of the worst economic downturns in its modern history, with the inflation rate among the highest in Europe, and the highest outside Eastern Europe, economists say.

The country has also seen a drastic slump in the real estate sector, with home prices plunging to the lowest level in years, while consumer spending has plummeted due to the cost of living crisis.

Swedish GDP shrank 0.5% in the last three months of 2022, indicating that the country has already entered a recession.

For more stories on economy & finance visit RT's business section

(RT.com)

Watch latest videos

News RELEASES

Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Denmark Sun.

More Information

17 ℃

Fair in Copenhagen

Europe

Section

Official: airlines industry acting to prevent cancellations

ISTANBUL, Turkey: In an interview with Reuters, Willie Walsh, director-general of the International Air Transport Association, (IATA), said airlines are ...

Airbus awaits record 500 jet order from IndiGo

PARIS, France: European plane manufacturer Airbus is reported to be close to a record agreement to sell 500 narrow-body jets ...

Nearly 16,000 Ukrainian pupils enrolled in Ireland schools

DUBLIN, Ireland: Officials in Ireland have reported that 15,589 Ukrainian students were enrolled in schools last month.Throughout Europe, Ireland continues ...

Russia says journalists from 'unfriendly' country cannot cover forum

MOSCOW, Russia: Journalists from countries that are "unfriendly" to Russia will be banned from covering this year's St. Petersburg International ...

US Pentagon to pay SpaceX Starlink to provide internet for Ukraine

WASHINGTON D.C.: The Pentagon said this week that the satellite communications service started by billionaire Elon Musk, SpaceX's Starlink, has ...

Kremlin reacts to drone attack in Voronezh

Ukraine appeared to target civilian infrastructure, Russian presidential spokesman Dmitry Peskov has saidThe Kremlin has accused Ukraine of carrying out ...

Scandinavia

Section

Plan to Move Vietnam to Carbon Neutrality Faces Hurdles

HO CHI MINH CITY, VIETNAM - Vietnam's long-awaited national power development plan, aimed at achievement of carbon neutrality by 2050, ...

French Open: Alexander Zverev to take on Casper Ruud in 2nd semi-final

Paris [France], June 9 (ANI): Norwegian tennis player Casper Ruud will face German tennis star Alexander Zverev in the second ...

Bangalore Watch Company Pays Tribute to ISRO's Chandrayaan Missions with a Watch Containing an Outer Space Meteorite Stone

NewsVoirBangalore (Karnataka) [India], June 9: In the spirit of producing world-class watches that tell stories from India, Bangalore Watch Companytrade;celebrates ...